Chinese bid for Northern Aerospace falls through as regulator denies approval

Chinese takeover attempts to buy a British defence company have fallen through, according to UK private equity firm Better Capital.

Approval has not been given for aircraft parts maker Northern Aerospace to be purchased by Derby-based Gardner Aerospace, a subsidiary of Chinese aerospace and mining firm Shaanxi Ligeance Mineral Resources.

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Fears around Chinese government levels of access to sensitive information put the £44m deal back on hold last month, and Britain’s competition regulator has denied approval for the sale to go through.

In an update this morning Better Capital said: “Permission to complete the sale was not obtained from the Competition and Markets Authority by the revised contractual deadline, despite requests for such permission by both parties.

“Accordingly the proposed transaction has lapsed.”

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Northern Aerospace, which is based in Country Durham and employs around 600 people, was set to be sold until opposition last month from business secretary Greg Clark, who allegedly stalled the selling of Northern Aerospace on the urgent advice of defence secretary Gavin Williamson.