(Reuters) – UK private equity firm Better Capital PCC Ltd’s sale of airplane parts firm Northern Aerospace Ltd to a Chinese buyer has fallen through after regulators did not issue approval following a probe into national security concerns.
The UK Competition and Markets Authority (CMA) launched an investigation last month into the 44 million pound sale of the company to a unit of China’s Shaanxi Ligeance Mineral Resources Co., issuing a notice halting the disposal.
That followed a formal intervention by the British Secretary of State for Business, Energy and Industrial Strategy under rules allowing it to take action on national security grounds.
Better Capital said Northern Aerospace had clearly demonstrated that there were no competition issues in the deal and that all matters raised by the Ministry of Defence had been satisfactorily dealt with.
“NAL and (Better Capital-unit) the GP have been advised that there are national security issues but neither has any knowledge of their nature and both remain ignorant as to how the disposal of NAL could give rise to any transaction-specific concern,” the company said.
