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UK authorities to review £4B Cobham takeover

Private equity firm Advent International Corp.'s offer to take over aerospace and defense group Cobham PLC will be reviewed by U.K. authorities on national security grounds, the Financial Times reported.

U.K. business secretary Andrea Leadsom ordered the Competition and Markets Authority to investigate the national security implication of the £4 billion transaction, requesting that it report back by Oct. 29, the report said.

Shareholders in the group backed the all-cash offer from Advent on Sept. 16, with 93% voting in favor on a turnout of 78.5%. But the founding family of Cobham, which owns 1.5% of the company, believes a takeover is against the "national interest." Nadine Cobham, whose late husband was the son of the founder and ran the company, wrote to the government to ask it to intervene.

Advent said it is committed to being a responsible steward of Cobham, encouraging its future growth and success, the Financial Times reported. It has also been in talks with the government about providing legally binding commitments on investing in research and development in the U.K., post-takeover.

Cobham was unavailable for comment, the Financial Times said.

Cobham's air-to-air refueling technology is used on all western fast jets, and it is a key supplier for the F-35 fighter and to the U.S. military's electronic warfare and radar capabilities.