Business Secretary Andrea Leadsom has announced that she is minded to accept legally binding undertakings offered in the proposed acquisition of Cobham
Today (19 November 2019) the Business Secretary Andrea Leadsom has announced that she is consulting on steps to address the national security concerns raised by the proposed acquisition of Cobham, a UK defence company, by Advent International, a US private equity firm. She is minded to accept undertakings offered by the acquiring company to address the concerns identified. No decision will be taken until the consultation has concluded and the representations have been carefully considered.
This decision follows further advice from the Ministry of Defence.
The proposed undertakings are now out for public consultation until midnight at the end of 17 December 2019, in accordance with the process set out in the Enterprise Act 2002. They would require Cobham’s new owners to:
Business Secretary Andrea Leadsom said:
This decision on the national security considerations is separate to any discussions on the economic implications of the proposed merger.
The Business Secretary’s decision is made in a quasi-judicial capacity, which means that the Secretary of State must act, and be seen to act, in a scrupulously fair and impartial manner.