WHY THIS DEAL RISKS SAFETY AND SECURITY

WE are living in a highly dangerous and chaotic world, with old alliances and agreements constantly under strain. If ever there was a time for Britain to take risks with its defence industries, now is not it.

As a former Chief of Naval Staff and Home Office minister with responsibility for security matters, I am deeply concerned at how the US private equity business Advent International has swooped in and proposed a £4billion takeover of Britain’s defence giant Cobham plc.

Founded 85 years ago, Cobham’s highly sensitive technologies underpin the safety and security of this country. Since the 1940s, it has pioneered and overseen the manufacture of inflight refuelling systems that reach almost every air force in the world.

It is also a world leader in developing antennae technology and weapon release

systems for fighter aircraft, both of which are crucially important for the next generation of Tempest stealth fighters being developed for the RAF.

Cobham currently has no Tempest contracts but there are widespread concerns it may not be able to work on it in future if it is sold to a foreign buyer. It would be strategic madness to depend on Europe for these specialist capabilities. And even though the US is a more strategic partner, it would also be a mistake to rely on them.

Indeed, I fear that our Government is hesitating to intervene in case it jeopardises a possible future trade deal with the US.

When British engineering firm GKN, which once manufactured Spitfires, was taken over by investment firm Melrose last year, the Government demanded to know Melrose’s intentions. I am amazed that no such assurances have been demanded from Advent, despite Cobham being strategically more important than GKN.

COBHAM derives the overwhelming majority of its revenues from defence, which only forms a small part of Advent’s business. I am therefore concerned that Advent does not intend to be a longterm strategic owner of Cobham. In fact, I have little doubt that Cobham will be broken up and sold to the highest bidder.

One figure quoted is that it does less than five per cent of its business with the Ministry of Defence. But what this hides is that Cobham owns 13.3 per cent of AirTanker Holdings, a different company which owns and maintains Voyager aircraft, the largest in the RAF Fleet.

It is time for the Government to think again, to stand up for Britain’s sovereign capability. This is a British business we cannot afford to lose.