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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.

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The move comes days after bham -Ltd/”>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.”

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.

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Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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