UK CMA finishes review of Cobham's bid for Ultra Electronics

The UK Competition and Markets Authority (CMA) has completed its assessment of whether Cobham Group's proposed acquisition of Ultra Electronics raises national security concerns, the CMA announced on 18 January.

The report, which has not been publicly released, is in the hands of UK Business Secretary Kwasi Kwarteng, who requested the review in August 2021. Kwarteng will “carefully consider” the document before deciding on next steps, including whether the acquisition should receive further scrutiny or be approved with conditions, according to a government spokesperson.

“While the government welcomes foreign investment, it is right that we fully consider the national security implications of this transaction,” the spokesperson said.

The government did not indicate when Kwarteng would make his decision.

Cobham has offered GBP2.6 billion (USD3.5 billion) for Ultra, saying the combination would create a “global defence electronics champion”. Although Cobham and Ultra are both based in the UK, Cobham is owned by US private equity firm Advent International, which has come under fire for divesting several Cobham businesses since it bought the storied company in January 2020.