(Bloomberg) — The British government ordered a probe into the proposed purchase of defense-technology specialist Ultra Electronics Holdings Plc by U.S. buyout firm Advent International Corp., citing national security concerns.
Business Secretary Kwasi Kwarteng has issued a Public Interest Intervention Notice regarding the 2.57 billion-pound ($3.6 billion) takeover by Advent’s Cobham Ltd. arm, according to a statement Wednesday. The Competition and Markets Authority has until Jan. 18 to prepare a report.
Ultra said Monday it had agreed an all-cash takeover by Advent, sparking an outcry among some politicians and unions, who say the firm’s role in supplying sonars and electronics to Britain’s nuclear submarines make it a vital national asset. Kwarteng told Bloomberg in an interview that he’d look more closely at ongoing defense deals, including the Ultra transaction.
Britain conducted a similar review before signing off Advent’s Cobham’s purchase.
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