Receive our newsletter – data, insights and analysis delivered to you
  1. News
August 19, 2021updated 01 Nov 2021 12:15pm

UK to investigate Cobham’s planned acquisition of Ultra Electronics

Earlier this week, Cobham agreed to buy Ultra Electronics in a deal valued at around $3.6bn.

The UK Government is set to investigate the planned takeover of British defence firm Ultra Electronics by a rival company.

The move comes days after Cobham, which is owned by US private equity firm Advent, agreed to buy Ultra Electronics for $3.6bn (£2.6bn).

In a Twitter post, the UK Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng said that he has directed the Competition and Markets Authority (CMA) to prepare a report on the proposed acquisition.

Under the Enterprise Act 2002, the secretary can intervene in mergers and acquisitions on public interest grounds relating to national security.

CMA will submit its report by 18 January next year.

Secretary Kwarteng said: “The UK is open for business. However, foreign investment must not threaten our national security.”

Content from our partners
Bespoke harsh environment connector solutions set Omnetics apart from competitors
Growing opportunities for Unmanned Aerial Systems
Keeping the defence world connected with Smiths Interconnect

He has also tabled an order in parliament to prevent Ultra from disclosing sensitive information to Cobham about the services it provides to the British government and armed forces.

Headquartered in London, Ultra provides application-engineered solutions in the key elements of mission-critical and intelligent systems.

The company particularly operates as a Tier 3 (sub-system) and occasionally a Tier 2 systems provider in the maritime, military and commercial aerospace and C4ISR/EW markets among others.

Ultra’s core markets include the US, Canada, UK, Australia and New Zealand.

After announcing the acquisition, Cobham said it will safeguard the UK’s national security, maintain UK headquarters and increase investment.

It also promised that it will create new jobs and protect existing ones according to a Reuters report.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The defence industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU