UK clears U.S.-listed Parker's takeover of defence firm Meggitt
LONDON, July 19 (Reuters) - Britain's business minister Kwasi Kwarteng has approved the 6.3 billion-pound ($7.57 billion) takeover of London-based defence firm Meggitt MGGT.L by U.S. engineering and aerospace company Parker-Hannifin PH.N , his department said on Tuesday.
The deal was scrutinised by the government over competition and national security concerns, as Meggitt's customers include Britain's Ministry of Defence (MoD), Boeing BA.N , Airbus AIR.PA and Rolls-Royce RR.L .
On Tuesday, the business department said that its decision to clear the deal had come after advice from the MoD and the competition regulator, and following two separate consultations.
The department said it had accepted undertakings from Parker to mitigate national security risks and competition concerns, and that the assurances "secured the future of Meggitt and the important role it plays in the UK aerospace sector."
The commitments, which were given voluntarily by the New York Stock Exchange-listed company, included honouring existing contracts and notifying MoD in advance if there were any material changes to Meggitt's ability to supply to the MoD.
The company has also promised to retain Ansty Park in Coventry - a city in central England - as its British headquarters, increase its research and development activity and protect jobs.
The deal was part of a flurry of transactions involving U.S. companies looking to take over their British rivals due to cheaper valuations in the post-Brexit era. ($1 = 0.8327 pounds)
Reporting by William James; Writing by Muvija M; Editing by Michael Holden and Paul Simao
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.