Secretary of State consults on
undertakings in Advent International/Cobham merger
The Business Secretary has published
undertakings to address national security concerns raised by the proposed
acquisition of UK defence company Cobham plc by funds managed by Advent
International Corporation (Advent) and the Blackstone Group.
With the acquisition of
control by Advent and the Blackstone Group being effected via a single
agreement and being inter-conditional, the CMA considered the two transactions
as forming part of one single relevant merger situation
The Secretary of State
identified national security concerns relating to the risks affecting security
of information and security of supply.
The Secretary of State considers
that she has the power to refer the transaction for a Phase 2 review by the CMA
but is minded to accept undertakings. These include continuation and
strengthening of existing security arrangements; requiring Cobham's new owners
to honour the terms of existing contracts, notify the Ministry of Defence in
advance if there is a material change to Cobham's ability to supply key
services, and refrain from withdrawing from any specified service for a set
period; and also requiring the new owners to give the Ministry of Defence prior
notice of plans to sell the whole, or elements of, Cobham’s business.
Comments on the undertakings
are invited by 17 December 2019.
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