Government Launches Investigation Into £4bn Cobham Takeover On 'National Security Grounds'

Cobham Falcon (Picture: Jerry Gunner).

The Government has launched an investigation into the £4 billion take-over of aerospace and defence giant Cobham on "national security concerns". 

Business Secretary Andrea Leadsom called for an investigation to assess the security implications of Cobham's sale to the US private equity firm, Advent International.

The sale was approved by shareholders on Monday.

Cobham's sale was overwhelmingly backed by investors despite strong opposition from Lady Nadine Cobham.

Lady Cobham, whose late husband Michael ran the business, called on the Government to intervene.

In August, Lady Cobham wrote to the Defence Secretary and Business Secretary arguing the sale is not in "the UK's national interests".

In a statement, Mrs Leadsom said the competition watchdog, Competition and Markets Authority (CMA), has until 19 October to investigate.

She said: "Following careful consideration of the proposed takeover of Cobham, I have issued an intervention notice on the grounds of national security.

"As part of the statutory process, the CMA will now investigate and carry out a review on the national security implications of the transaction."

After the regulator reports back to the Government, it is up to the Business Secretary to decide whether the deal is in the public interest or if a further investigation is needed.

Cobham employs around 10,000 people, including 1,700 in the UK, and is best known for its air-to-air refuelling technology.

It became the target of takeover interest after its share value slumped on the back of a raft of profit warnings and contract disputes.