Southforward.com – A UK private equity company, Better Capital PCC Ltd reportedly has canceled the sale of Northern Aerospace Ltd. to buyers from China.
Quoted by Reuters on Wednesday (11/7/2018), this decision after the British regulator rejected the sale plan was due to an investigation of national security issues.
Last month, the British competition authority or Competition and Markets Authority (CMA) launched an investigation into a £ 44 million pound deal worth US $ 58 million Northern Aerospace to a subsidiary of Shaanxi Ligeance Mineral Resources Co., Gardner Aerospace Holdings Ltd. At the same time, CMA publishes notice for transaction delays.
The delay follows formal intervention by the UK Department of Foreign Affairs on Business, Energy and Industrial Strategy.
The CMA has a deadline of up to July 13 to submit a report on the competitive and national security aspects of this acquisition deal.
Better Capital said that this agreement has ended in the absence of consent. Some authorities also blocked this sale.