Meggitt has said it was confident its £6.3bn takeover by US rival Parker-Hannifin will go ahead despite the intervention of business secretary, Kwarsi Kwarteng over national security concerns.
Kwarteng referred the proposed acquisition of the aerospace manufacturer to the Competition and Markets Authority yesterday, citing public interest. He said: “The UK is open for business. However, we will take steps to protect our national security when necessary.”
As well as being a key defence supplier to the UK government, Meggitt also provides components for US F-35 Lightning II fighter jets. The acquisition would almost double Parker’s aerospace operation. The company issued a brief statement which said that it looked forward to “engaging constructively” with the competition regulator on its review. Meggitt added that it expects the acquisition will complete in the third quarter of 2022.
Deal includes series of legally binding commitments
Parker-Hannifin made a series of legally binding commitments after the acquisition was announced in August. These included keeping the company’s UK headquarters in Coventry and protecting jobs in research and development, product engineering and manufacturing operations. However, jobs in other areas will not be protected. The company employs around 2,000 people in the UK.
Rival bidder TransDigm pulled out of its bid for the UK aerospace company in September.