Government gives green light to £4bn takeover of defence giant Cobham

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Government gives green light to £4bn takeover of defence giant Cobham
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Business Secretary Andrea Leadsom says she is confident that the merger will not compromise national security.

The government has signed off a £4bn takeover of UK defence company Cobham by US private equity firm Advent International.

A merger between the companies was agreed to in July, but the acquisition was delayed on the orders of Business Secretary Andrea Leadsom so that the government could addressAdvent is said to have proposed a number of legal undertakings aimed at mitigating any potential national security worries. They include the ongoing protection of sensitive government information and requiring prior notice to the Ministry of Defence and Home Office on any future plans to sell the Cobham business.Mrs Leadsom, who led the government consultation process, said she was confident that the merger would not compromise national security, adding the decision had been"meticulously thought over".

"While trade and investment play an important part in the UK economy, when intervening in mergers on national security grounds, I will not hesitate to use my powers to protect national security, if it is appropriate to do so.

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