Ministers are under mounting pressure to intervene in private equity giant’s £2.6bn swoop on Ultra Electronics
Ministers are under mounting pressure to intervene in a private equity giant’s £2.6billion swoop on Ultra Electronics.
The FTSE250-listed defence group supplies cutting-edge submarine-hunting technology to the Royal Navy – and it has been targeted for a takeover by Advent International.
But Labour MPs have joined Tory counterparts in urging the Government to step in amid mounting fears over the threat the deal poses to national security.
Battle: Labour MPs, including Rachel Reeves, have joined Tory counterparts in urging the Government to step in amid mounting fears over the threat the deal poses to national security
Shadow chancellor Rachel Reeves, shadow business minister Ed Miliband and shadow defence secretary John Healey said in a joint letter to ministers: ‘This government should be doing all it can to protect Ultra in any kind of takeover. The Government cannot stand by once more whilst defence technology is offshored.’
Tory MP Tobias Ellwood, chairman of the defence and security committee, said Ultra’s role as a UK military supplier could mean there are ‘national interest reasons to prevent this takeover bid’.