Connect with us

Business

UK intervenes in bid by U.S. aviation firm Parker for Meggitt

UK intervenes in bid by U.S. aviation firm Parker for Meggitt 1

LONDON (Reuters) -Britain said on Monday it was intervening in a proposed 6.3 billion-pound ($8.65 billion) takeover by U.S. engineering and aerospace firm Parker-Hannifin of its British rival Meggitt, citing national security grounds.

The business minister Kwasi Kwarteng issued a so-called “intervention notice” to review the impact of the takeover.

“The UK is open for business, however we will take steps to protect our national security when necessary,” Kwarteng said.

Parker-Hannifin said in August it had agreed to buy London-listed Meggitt and promised a series of commitments, including on UK jobs, in an attempt to fend off concerns about the deal.

The planned takeover was the latest by U.S. investors for British firms which have become attractively priced after the COVID-19 pandemic and Brexit which hit the value of the pound.

In August, Nvidia Corp’s planned $40 billion acquisition of chip designer ARM ran into problems when a British regulator found it could damage competition and weaken rivals, requiring a further lengthy investigation.

A Parker-Hannifin spokesperson said the company looked forward to engaging with the government and “bringing the review of the transaction to a satisfactory conclusion”.

“We continue to expect that the transaction will close in Q3 2022 and will not offer any further comment on regulatory processes,” the spokesperson said.

($1 = 0.7283 pound)

(Reporting by William James and William SchombergEditing by Andrew MacAskill a nd Giles Elgood)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now