Leadsom intervenes in takeover of defense provider Cobham

The government has intervened in the planned £4bn takeover of Cobham, a UK aerospace and defence supplier, by a US private equity firm on the grounds of national security. Andrea Leadsom, the business secretary, has instructed the Competition and Markets Authority to investigate the takeover of Cobham, a world leader in systems for planes to refuel in mid-air, by Boston-based Advent International. Leadsom said: “Following careful consideration of the proposed takeover of Cobham, I have issued an intervention notice on the grounds of national security. The government’s goals are to support private sector innovation whilst safeguarding the public interest.” Shareholders on Monday approved the sale for cash of Cobham, established 85 years ago by the aviation pioneer Sir Alan Cobham, against the wishes of the founding family, which owns 1.5% of the company. The takeover was opposed by some shareholders, opposition MPs and Nadine Cobham, the widow of Sir Alan’s son, who called on Leadsom to step in to protect the business. Advent has said it will review Cobham’s businesses, raising concerns it was planning to break up the company. Cobham employs about 10,000 people, including 2,000 in the UK, and operates in more than 100 countries. The company supplies [...]

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