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UK Secretary of State for Business, Energy & Industrial Strategy Kwasi Kwarteng on Tuesday announced he has cleared the acquisition of defence contractor Meggitt PLC by Parker-Hannifin Corp.
In recent months, Parker-Hannifin, a Cleveland, Ohio-based engineering and aerospace company, had made undertakings to mitigate competition and national security concerns regarding its £6.3 billion takeover of its Coventry, England-based peer.
‘The business secretary has now accepted undertakings from the parties to mitigate national security risks and competition concerns,’ the department said.
The undertakings cover measures to sure up the security of supply, information security and sovereign UK capabilities. It will also entail the divestment of Parker's aircraft wheels and brakes division to a purchaser approved by Kwarteng, on the grounds of competition concerns.
Parker-Hannifin also signed economic assurances that it would continue to use the Meggitt name as well as its own, and retain the UK headquarters and advanced materials centre.
It also committed to increasing research & development activity and protecting jobs.
‘We have also agreed to substantial legally binding commitments, which underscore our deep commitment to the UK. As we move closer to the completion of the acquisition and the combination of these two strong businesses, we look forward to welcoming the Meggitt team to Parker,’ said Parker Chief Executive Officer & Chair Tom Williams.
The acquisition is still subject to regulatory clearance and approval at the High Court of Justice of England & Wales. It is expected to close in the third quarter of the year.
Shares in Meggitt closed up 0.1% to 789.00 pence in London on Tuesday.
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