The authorities has launched an investigation into the £4bn takeover of defence agency Cobham, citing “national security” issues.
Business Secretary Andrea Leadsom mentioned she had requested the Competition and Markets Authority (CMA) to look at the cope with US non-public fairness agency Advent International, agreed on Monday.
She mentioned the watchdog had till 29 October to evaluate the safety implications of the sale – backed by buyers regardless of opposition from Lady Nadine Cobham, whose late husband Michael ran the enterprise.
She had referred to as on ministers to step in – accusing fellow shareholders of holding a “white flag” over the enterprise, which has pursuits in air-to-air refuelling know-how and communications methods.
Mrs Leadsom mentioned the federal government needs to “support private sector innovation whilst safeguarding the public interest”.
In an announcement, she mentioned: “Following cautious consideration of the proposed takeover of Cobham, I’ve issued an intervention discover on the grounds of nationwide safety.
“As part of the statutory process, the CMA will now investigate and carry out a review on the national security implications of the transaction.”
Mrs Leadsom may order a so-called part two investigation, ought to the CMA’s report help her issues.
Cobham shares, over 63% larger within the yr thus far, have been buying and selling virtually 1% decrease in early Wednesday offers.
An Advent spokesperson mentioned: “Advent is dedicated to being a accountable steward of Cobham, encouraging its future progress and success.
“We will proceed to interact constructively and cooperatively with the UK authorities on this half of their assessment.”