- Defence contractor Ultra Electronics said it had agreed to be acquired by rival defence group Cobham for £2.6 billion.

Ultra investors would receive £35 cash per share.

'We believe Cobham and Ultra's complementary capabilities delivering mission critical technology will be significantly enhanced through the combination of the two groups,' Cobham chairman Shonnel Malani said.

'We recognise the important role that a combined Cobham and Ultra will play in 'five-eyes' defence and are committed to protecting the continuity of supply to the UK and our allies.'

Malani said Cobham would work with the UK government to agree legally binding commitments 'which safeguard Ultra's contribution to the UK economy and national security'.

Story provided by