Is the UK government taking a tougher approach to takeovers?

A key military supplier Ultra makes sonobuoys – which are floating sonar detection devices – and other classified sonar equipment for the Royal Navy and employs over 1700 people.

Advent has a record of buying companies and then breaking them up – it sold off Cobham’s antenna and radio business as well as its in-flight air-to-air aircraft refuelling systems division – and due to this deal’s potential impact on national security the business secretary, Kwasi Kwarteng, is said to have instructed Whitehall officials to monitor the multibillion-pound takeover bid.

This move highlights a growing trend in which the UK government appears to be taking a more aggressive position when it comes to the acquisition of British companies.

While it is concerned at the impact on British-owned defence manufacturing capabilities should Ultra be sold, the UK government has also recently announced that it could block China’s state-owned nuclear energy company from building a nuclear reactor in Britain, again on national security grounds.

It does appear that the UK government is taking a more robust approach to M&A activity than many of its predecessors but there are certainly risks. While it wants to protect British jobs and interests, it is keen to promote a more ‘global’ Britain which would suggest that the Ultra acquisition will proceed but with strict undertakings to safeguard UK jobs and technology.

Source link

We will be happy to hear your thoughts

Hinterlasse einen Kommentar

Enable registration in settings - general
Compare items
  • Total (0)