BRITAIN yesterday accepted undertakings from both Ultra Electronics and rival Cobham, moving a step closer in approving the latter's acquisition of the London-listed defence firm, after having raised security concerns over the deal.

"The government has accepted legally binding economic commitments offered by Cobham Ultra Acquisitions Limited to protect the future of Ultra Electronics Holdings plc in the UK,"

the Department of Business, Energy & Industrial Strategy said yesterday.

The UK government last month started a consultation process over the £2.57bn ($3.06bn) deal, following advice from the ministry of defence, and said the business secretary was "minded to accept undertakings offered by Cobham" to address the concerns.

Ultra and Cobham, committed to maintaining a corporate headquarters of the Ultra Group in the UK and increase research and development expenditure by at least 20 per cent over three years.

Reuters

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