Cobham owner promises to stay in the UK

UK DEFENCE company Cobham has revealed a series of promises made by its private equity suitor that led to the Government waiving through its £4bn takeover.

Cobham, a world-leading expert in air-to-air refuelling, said new US owners Advent International would maintain a UK headquarters, continue funding research and development at its Dorset offices and keep using the Cobham name.

Contracts with the Ministry of Defence (MoD) and the Home Office will also continue to remain in the UK, with a “commitment not to restructure the UK operating companies’ capacity in a way that would result in some, or all, of the relevant activities being developed and/or supplied from outside the UK without the written approval of the relevant (Government) department”.

Any future sales of parts of the business must be passed by the MoD and Home Office too, it added.

The deal, which was first approved by shareholders in August before going to a review by the Competition and Markets Authority and Government departments, is now expected to be concluded on January 17.

Shonnel Malani, partner at Advent, said: “Advent takes its custodianship of Cobham seriously, and we are confident the transaction and undertakings being given on national security, jobs and future investment, provide important long-term assurances for both Cobham’s employees and customers, particularly in the UK and also globally.”

The Government’s decision to allow the deal to pass without a more in-depth investigation has already been criticised by the family of Cobham’s founder.

Late on Friday, Business Secretary Andrea Leadsom gave the deal the go-ahead after Advent agreed to the legal undertakings.