Britain says Meggitt-Parker deal concerns addressed, launches consultations
2022.06.29 01:00
The Union Jack flag is flown outside the Houses of Parliament, in London, Britain February 9, 2022. REUTERS/Tom Nicholson
(Reuters) -Britain said on Tuesday U.S. engineering and aerospace company Parker-Hannifin Corp (NYSE:PH) has addressed competition and national security concerns over its 6.3 billion-pound ($7.67 billion) takeover of UK rival Meggitt Plc (L:MGGT).
Britain said the Secretary of State proposed to accept Parker’s undertakings but it has launched public consultations and will wait till the consultation period concludes on July 13 before making a final decision.
The British government was probing the deal, the latest by a U.S. buyer of a British firm, over competition and national security concerns, as Meggitt’s customers include Boeing (NYSE:BA), Airbus, Britain’s Ministry of Defence (MoD) and Rolls-Royce (OTC:RYCEY).
Parker in May had agreed to sell its aircraft wheel & brake division to industrial machinery maker Kaman (NYSE:KAMN) Corp for $440 million, which London said addressed its competition-related queries.
Meggitt supplies wheel and brake systems for military fighter programmes, and Parker’s unit sale to Kaman resolves concerns about overlapping activities with Meggitt.
The British government added that Parker also committed to honour its existing contracts to its defence ministry and agreed to protect sensitive government information in Meggitt.
Following UK’s regulatory update, Parker said it still expected to close the deal in third quarter of this year.
“We are pleased that following very constructive engagement with the UK Government, the Secretary of State is minded to accept the national security and competition undertakings we have offered,” Parkerom Williams, the chief executive of Parker said in a statement.
The deal won EU antitrust approval in April.
Meggitt did not respond to Reuters’ request for comment.
($1 = 0.8209 pounds)
