LONDON (Reuters) – The British government has said it is minded to allow Advent’s purchase of Cobham (L:) after the private equity group agreed to place a number of British executives on the defence company’s different boards.
Britain’s Business minister Andrea Leadsom had put the $5 billion deal on hold while she established whether the sale of the air-to-air refuelling equipment maker posed a national security threat.
She said on Tuesday she was now minded to accept the deal after U.S.-based Advent put forward several legal undertakings including strengthening security arrangements around the company.
Advent will also have to give prior notice to the Ministry of Defence if it plans to sell all or parts of Cobham’s business, and honour existing contracts with the government.
The government said it would now run a consultation until Dec. 17 on the proposals.
“No decision will be taken on whether to accept the undertakings until the consultation has closed and the representations have been carefully considered,” Leadsom said in a statement.
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