Better Capital say CMA puts spanner in the works of Northern Aerospace deal – Regarding the disposal of Northern Aerospace Limited to Gardner Aerospace Holdings Limited, Better Capital PCC Limited has been informed by BECAP12 GP Limited that the parties have entered into a further unconditional agreement which provides for completion on 22 June 2018.
On 17 June 2018, the Secretary of State for Business, Energy and Industrial Strategy issued an intervention notice in respect of the disposal, further to which the Competition and Markets Authority (the “CMA”) issued an Initial Enforcement Order in respect of the deal on 18 June 2018. An Initial Enforcement Order is a mechanism available to the CMA to prohibit, unless the CMA has granted a derogation, activity in respect of a merger which may prejudice the outcome of a CMA investigation.
Better Capital PCC and the GP were only made aware last night in respect of the Initial Enforcement Order and say that they are surprised. Work has commenced to ensure that all necessary information is provided to the CMA during the course of their investigation. Better Capital PCC will make a further announcement in due course.
Update 25 June 2018
The Initial Enforcement Order issued by the Competition and Markets Authority (the “CMA”) in respect of the disposal prevented the transfer of the NAL shares to Gardner on 22 June 2018, which was the target date for completion. The parties have agreed that if the CMA does not approve the share transfer by 7 July 2018, that the disposal will be terminated. The GP, NAL and their advisors are continuing to support the investigation by the CMA; however, there is no certainty that a satisfactory outcome will be forthcoming. The company will make a further announcement in due course.
BCAP / BC12 : Better Capital say CMA puts spanner in the works of Northern Aerospace deal