LONDON, Dec 23 — British defence group Cobham said today that its £4-billion (RM16.5-billion) takeover by US private equity firm Advent International will complete next month, after the UK government approved the deal late Friday.
Britain had ordered a national security probe into US private equity group Advent International’s bid, worth US$5.2 billion or €4.7 billion (RM21.5 billion), in September.
Dorset-based Cobham is known for pioneering technology enabling the mid-air refuelling of planes, while it also makes electronic warfare systems and communications for military vehicles.
Just before the weekend, Business Secretary Andrea Leadsom signed off on the takeover deal, after Advent proposed legal undertakings that are aimed at mitigating possible national security concerns.
Cobham said in a brief statement today that the takeover will conclude on January 17, following news it will not face an in-depth investigation.
“Advent takes its custodianship of Cobham seriously,” said Advent partner Shonnel Malani in today’s statement.
“We are confident the transaction and undertakings being given on national security, jobs and future investment, provide important long-term assurances for both Cobham’s employees and customers, particularly in the UK and also globally.”
Advent’s undertakings included a promise to protect sensitive government information and keep its headquarters in Britain.
In addition, it will need agreement from the Ministry of Defence and the Home Office before selling any parts of the Cobham business.
However, Leadsom’s announcement — which came after parliament closed for the Christmas recess — sparked criticism from the company’s founding family that it was aimed at avoiding scrutiny.
Lady Nadine Cobham described it as “deeply disappointing” news that was “cynically timed to avoid scrutiny on the weekend before Christmas”.
Shareholders at the British company have already approved the deal despite vocal opposition from the founding family. — AFP
