At a moment of geopolitical strife, Britain’s defence capabilities have never been more important.
The UK is playing a critical role in Ukraine, providing training and weapons to the country’s military, as it seeks to turn back the Russian assault.
In the Middle-East RAF Typhoon jets, operating out of Cyprus, have been flying the arduous 3,000 mile journey to Yemen to attack Houthi rebels threatening the freedom of passage through the Red Sea.
In focus: Britain’s defence capabilities have never been more important, Alex Brummer says
It is an air journey only made possible by the flight refuelling technology developed by aviation innovator Sir Alan Cobham.
How extraordinary it is that at a time when command and control over Britain’s defences is so vital to our national security that critical technologies, developed at Wimborne based Cobham plc, were allowed to fall into the hands of private equity vulture Advent.
It is an outfit devoted to reaping quick profits for investors and tax advantaged returns for partners.
The managing partner of Advent International Shonnel Malani is unapologetic about the rapid fire way in which a UK aerospace champion, bought for £4billion in 2019, has been dismantled ‘making our investors happy.’
He claims to have fundamentally improved Britain’s defence supply chain. Selling off Cobham air-to-air flight refuelling system to Irish-US competitor Eaton for £2billion may appear to pose no threat to the UK: after all the Americans are our allies in protecting Red Sea shipping.
The reality is that Britain has surrendered proprietary technology, vital R&D and patents to an Irish-American giant and torn a hole in the nation’s sovereignty and capability.
Conflict: RAF Typhoon jets have been flying the arduous 3,000 mile journey to Yemen to attack Houthi rebels
For the moment jobs in Dorset may be protected but from now on decisions about the workforce, R&D and investment will be taken at Eaton’s dual homes in Dublin and Ohio.
Moreover, Ireland’s foreign policy and its views on the Middle-East differ greatly from the UK which potentially could damage the UK’s freedom of action.
It is easy for Advent to argue it has done Cobham a huge favour by selling off its disparate parts so rapidly.
Reality is that Advent and other private equity firms are rarely business builders.
The objective is to buy undervalued assets, depriving existing shareholders of an upside to which they are entitled, and disposing of them as soon as possible making often super-rich investors ever more wealthy.
A pattern of ruthless cost cutting, particularly in tech based enterprises, is rarely positive.
Advent, having dismantled Cobham, also has been allowed by UK public investors, a flaccid board and the government to gobble up another defence gem Ultra Electronics.
Its advanced sonar technology is capable of detecting leading to the capture and destruction of enemy submarines. With each aerospace and electronics takeover the UK armed forces are undermined.
At this time of supreme international peril the current and future governments must invoke the National Investment and Securities Act to protect what is left of our diminished defence players.
No longer should cash, private equity greed and overseas ownership be allowed to work against the public interest.
