Don’t block Ultra Electronics deal, major shareholders tell ministers

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Announcing his national security investigation on Wednesday, Mr Kwarteng said: “The UK is open to business, but foreign investment must not threaten our national security.”

There is speculation that referring the deal to the CMA and blocking information sharing is an attempt to either delay Advent or gain leverage to extract tougher pledges to protect UK jobs.

“This saves the government time to get the legislation they need to pass, and it sets up obstacles to progress,” said Howard Weldon, an independent defense analyst.

I think there’s a degree of responsiveness to public opinion, and that’s not necessarily good for either company. The government is desperate to put itself first and be proactive rather than reactive to events.”

Ultra’s president, Tony Rice, said he’s satisfied with the commitments Advent has made.

Shonell Malaney, Chairman of Cobham, said he “looks forward to working with Her Majesty’s Government to agree on legally binding commitments that protect Ultra’s contribution to the UK’s economy and national security.”

The Prosperity Institute, a think tank promoting British industrialization, has supported the government in examining the implications of selling Ultra on UK industry.

Sir Vince Cable, a member of the Institute’s advisory board, said: “Throwing sand in the wheels of an acquisition may be an effective way to beat the bidding as was the government action when Pfizer offered AstraZeneca. But we still lack effective takeover legislation protecting the UK from takeovers. which may undermine the country’s scientific base and advanced industrialization.”

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