Competition regulator to look at whether merger with US private equity-owned Cobham is national security risk
The takeover of the British defence firm Ultra Electronics by a US private equity company will be investigated on national security grounds, after the business minister, Kwasi Kwarteng, told the competition regulator to examine the deal.
Warning that foreign investment “must not threaten national security”, Kwarteng tabled an order in parliament preventing Ultra from disclosing “sensitive information” to Cobham, the defence firm behind the £2.6bn takeover bid. He said Ultra would be prevented from passing on details of the “goods or services it provides to HM Government or HM Armed Forces”, while the Competition and Markets Authority (CMA) examined the deal.