(Secretary of State for
Business, Energy and Industrial Strategy): On
25th July 2019, the boards of Cobham PLC and a
subsidiary of funds managed by Advent International, a US private
equity firm, announced that they had reached agreement on the
terms of a recommend cash acquisition of Cobham for approximately
£4 billion.
On 17th September, following advice from
relevant Government Departments and agencies, I initiated a
public interest intervention under the Enterprise Act 2002 into
this merger on the grounds of national security. I required that
the Competition and Markets Authority investigate the merger and
provide me with a report on the transaction by
29th October, which it has done. The Secretary
of State for Defence has also written to me about the national
security implications of the merger and the discussions which
have taken place with the parties to propose undertakings to
address those implications. I am grateful for the advice I have
received and the constructive engagement from the parties.
The decision on how to proceed in this case requires further full
and proper consideration of the issues. Having received these
reports, I will therefore have further discussions with my
ministerial colleagues and the parties to the transaction to
inform the decision-making process. I will update the House in
due course so that Honourable Members can scrutinise the
Government’s decision. The full legal process will continue to be
followed throughout the general election period.
