Aerospace merger flies again after being grounded by competition fears

The on-off purchase of Northern Aerospace by Derby-based Gardner Aerospace is expected to be completed within the next 24 hours after the deal was cleared by competition authorities last week.

The £44m acquisition had been held up after the Business Secretary Greg Clark asked the Competition and Markets Authority to investigate whether it would reduce competition and have an impact on national security.

Gardner is owned by Chinese aerospace and mining business Shaanxi Ligeance Mineral Resources.

The investigation blocked the deal’s progress beyond the deadline of July 7 and the agreement lapsed.

The competition and security fears have now been allayed and the two companies have now “entered into a binding legal agreement” to complete the transaction, a statement by Northern Aerospace owners Better Capital has said.

Northern Aerospace supplies precision machined parts to the aerospace industry. The County Durham-headquartered group employs around 600 people at six sites, including Leicester.