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TOP NEWS: UK government set to green-light Ultra Electronics takeover

Fri, 24th Jun 2022 08:16

(Alliance News) - Ultra Electronics Holdings PLC on Friday noted the UK government is "minded" to accept its takeover by Cobham, moving the deal a step closer to completion.

The UK government on Thursday said it was "minded to accept" remedies to address national security concerns raised by the GBP2.6 billion acquisition, instead of progressing the probe to a phase two inquiry.

UK Business Secretary Kwasi Kwarteng on Thursday, launched a consultation into the undertakings offered by Cobham to acquire Ultra, which makes submarine-hunting equipment as well as control systems for the fleet of Trident submarines that carry the UK's nuclear deterrent. The deal was originally held up on national security grounds.

Aerospace contractor Cobham was once a FTSE 250-listed company before it was bought by private equity firm Advent International in January 2020 in a deal which had sparked debate over UK national security.

The secretary of state for business, energy & industrial strategy on Thursday said he is "minded to accept" the undertakings proposed by Cobham to address national security concerns

The proposed undertakings are now the subject of a public consultation until July 3.

Ultra noted: "The acquisition remains conditional upon the Secretary of State's formal approval, pending the outcome of the public consultation, which represents the final outstanding condition relating to anti-trust and regulatory approvals to which the acquisition is subject."

The stock was up 13% at 3,458.00 pence on Friday morning, the best performer in the FTSE 250.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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