November 24, 2020

Britain approves Advent’s US$5 billion Cobham purchase

1 min read

The British government has approved Advent International’s US$5 billion purchase of defense company Cobham Plc after the U.S. private equity group offered a number of commitments to address national security concerns.

Britain's Business Secretary Andrea Leadsom is seen outside Downing Street in London
FILE PHOTO: Britain’s Business Secretary Andrea Leadsom is seen outside Downing Street in London, Britain November 5, 2019. REUTERS/Yara Nardi

REUTERS: The British government has approved Advent International’s US$5 billion purchase of defense company Cobham Plc after the U.S. private equity group offered a number of commitments to address national security concerns.

“Having considered the consultation responses and further advice from the Defence Secretary, I am satisfied that the undertakings mitigate the national security risks identified to an acceptable level and have therefore accepted them and cleared the merger to proceed”, Business Minister Andrea Leadsom said in a statement http://bit.ly/2PIzbkS on Friday.

She had said on Tuesday that Britain was now minded to accept the deal after Advent put forward several legal undertakings, including to place a number of British executives on Cobham’s boards.

Leadsom had earlier put the deal on hold while she established whether the sale of the air-to-air refuelling equipment maker posed a national security threat.

(Reporting by Kanishka Singh in Bengaluru; Editing by Simon Cameron-Moore)