The UK Government prohibits acquisition of a national supplier of military aircraft components on national security grounds (Gardner Aerospace / Impcross)

On 5 September 2020, the UK Government accepted undertakings from Gardner Aerospace Holdings Limited not to proceed with its proposed acquisition of Impcross Limited, a UK-based manufacturer of components for the aerospace industry (including for military aircraft). Gardner is owned by Shenzhen- listed Ligeance Aerospace Technology Co., Ltd (“LAT”). Specifically ,the Government identified concerns relating to: — The “protection of the UK’s aerospace capability and the safeguarding of sensitive information, skills and manufacturing capability within Impcross;” and — The “protection of the UK’s operational advantage.” This is a rare case of the UK Government effectively prohibiting a transaction on national security grounds. Government intervention in defence-sector transactions, even