Security News > 2021 > August > Buyout of British defence supplier Ultra Electronics paused by UK.gov over competition concerns

The British government has intervened in the US buyout of defence supplier Ultra Electronics, temporarily halting the acquisition and prohibiting any tech transfer overseas.

The business is a major supplier of high-end electronics to the Royal Navy and the other British armed forces.

The £2.6bn acquisition of Ultra was carried out through Cobham plc, formerly a standalone British business itself until its own acquisition by Advent a couple of years ago.

Business Secretary Kwasi Kwarteng's temporary pause on the Ultra buyout surprised some commentators who believed that any government interest in halting mergers and acquisitions would be mainly focused on high-profile Chinese deals, such as Newport Wafer Fab.

Competition regulators will now scrutinise the Ultra buyout.

The Competition and Markets Authority has opened a public comment period on the Ultra buyout.

News URL

https://go.theregister.com/feed/www.theregister.com/2021/08/19/ultra_electronics_buyout_paused_dcms/