UK To Quiz Purchase Of Defense Firm Ultra By U.S. Company

Britain said it will investigate possible national security risks from the planned 2.6 billion-pound ($3.6 billion) acquisition of defense firm Ultra Electronics by rival Cobham, which is owned by US private equity firm Advent.

Photo Insert: The Eurofighter Typhoon uses technology from Ultra Electronics and Cobham.

Customers of Ultra, which sells torpedo and radar systems and a range of defense communication equipment, include the British and US governments, William James and Chibuike Oguh reported for Reuters.

Cobham set out commitments to address concerns over potential national security implications of its takeover of Ultra when it announced an agreement for the acquisition earlier in the week.

"The UK is open for business, however foreign investment must not threaten our national security," business minister Kwasi Kwarteng said on Wednesday.

He said he had asked Britain's Competition and Markets Authority, a regulator, to prepare a report on the proposed transaction. The government said the deadline for the report was Jan. 18, 2022.

Kwarteng said he would seek to stop Ultra from disclosing sensitive information to Cobham about the goods or services it provides to Britain's government and its armed forces.

Advent declined to comment and instead referred to Cobham's statement on Monday which included the offer of legally binding commitments on Ultra including safeguarding national security, maintaining a headquarters in Britain, and investing more in the country.

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