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

  • Meggitt PLC
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  • Parker-Hannifin Corp
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  • NVIDIA Corp
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LONDON, Oct 18 (Reuters) – Britain stated 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 (PH.N) of its British rival Meggitt (MGGT.L), citing nationwide safety grounds.

The enterprise minister Kwasi Kwarteng issued a so-called “intervention notice” to assessment the influence of the takeover.

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

Parker-Hannifin stated in August it had agreed to purchase London-listed Meggitt and promised a collection of commitments, together with on UK jobs, in an try to fend off considerations concerning the deal.

The deliberate takeover was the newest by U.S. traders for British companies which have grow to be attractively priced after the COVID-19 pandemic and Brexit which hit the worth of the pound.

In August, Nvidia Corp’s (NVDA.O) deliberate $40 billion acquisition of chip designer ARM bumped into issues when a British regulator discovered it might harm competitors and weaken rivals, requiring an additional prolonged investigation.

A Parker-Hannifin spokesperson stated the corporate appeared ahead to participating with the federal 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 stated.

($1 = 0.7283 pound)

Reporting by William James and William Schomberg
Editing by Andrew MacAskill a nd Giles Elgood

REUTERS/Randall Hill

General view of the Big Ben clock tower in London, Britain, August 17, 2021. REUTERS/Hannah McKay

REUTERS/Randall Hill