(Alliance News) - The UK government said Tuesday it was prepared to approve the GBP4 billion takeover of FTSE 250-listed aerospace and defence firm Cobham PLC by a US private equity firm.
UK Secretary of State for Business, Energy & Industrial Strategy Andrea Leadsom said she was "minded to accept undertakings offered" by US private equity firm Advent International Corp that would "address the concerns identified" about the potential acquisition.
"No decision will be taken until the consultation has concluded and the representations have been carefully considered," the UK department added.
The undertakings proposed include safeguarding security arrangements which apply to Cobham when protecting UK government information, maintaining its capability to honour the terms of its existing contracts, and giving the UK Ministry of Defence notice of any plans to sell any or all of the firm.
"I have now reviewed further national security advice from the MoD and met with both Cobham and Advent who have offered legally-binding undertakings designed to mitigate national security concerns, which I am minded to accept," Leadsom said.
"They will now be considered by a public consultation and I will provide a further update once that process has concluded," Leadsom added. "No decision will be taken on whether to accept the undertakings until the consultation has closed and the representations have been carefully considered."
Shares in Wimborne Minster-based Cobham were 3.8% higher at 160.65 pence in London on Tuesday.
By Ahren Lester; ahrenlester@alliancenews.com
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