The private equity firm buying defence company Cobham (COB) has given legally binding guarantees it will protect British jobs after the £4bn deal goes through. US business Advent made the pledge as part of its efforts to secure ministerial approval for the takeover, which has now been waved through by Business Secretary Andrea Leadsom. The sale has sparked fears it could put UK national security at risk because of Cobham’s sensitive military contracts, as well as erode Britain’s industrial base. Campaigners are also concerned at revelations that Cobham will be loaded up with £1bn of debt.
Ryanair Holdings (RYA) has failed in its legal bid to prevent one of its former executives joining a rival airline. Justice Senan Allen ruled in the High Court in Dublin that Peter Bellew was free to join easyJet (EZJ) next month. In his judgment, he told the court that even though the non-compete clause was valid, it was overly restrictive. “I find that the covenant in this case, properly construed, would prevent the defendant from taking up employment with any European airline, including the legacy carriers, and so goes beyond what the plaintiff has shown to be justified,” Justice Allen said.
The maker of Vimto has warned a new sugar tax in parts of the Middle East could threaten its profits next year. Nichols (NICL) said it will have to hike the price of the purple soft drink to offset the introduction of a 50% tax on in Saudi Arabia and the United Arab Emirates. Vimto is a favourite in the region during the holy month of Ramadan. The grape, raspberry and blackcurrant-flavoured drink – invented by John Noel Nichols in Manchester during the early 20th century – is a popular choice at iftar, the evening meal at which Muslims break their fast during the period.
