Meggitt is to press ahead with an agreed takeover from US firm Parker-Hannifin, despite the prospect of a higher bid from a rival.
The FTSE 250 company has published offer documents for the deal agreed wirh Parker-Hannifin, confirming that it expected it to become effective in Q3 of 2022. The documents also noted a “preliminary, non-binding” approach from fellow US aerospace firm, TransDigm, last week, over a possible 900p-a-share offer for Meggitt, higher than the 800p-per-share deal agreed with Parker-Hannifin.
Chairman calls for “binding commitments” on jobs and investment
Meggitt’s chairman told the Sunday Times that the UK government needed to be ready to block any takeover if any firm could not give “binding commitments” on jobs and investment.
Sir Nigel Rudd said any new owner would need to guarantee to both the company and Westminster that research and development spending would be maintained, with the company’s headquarters remaining in Coventry.
“Government’s job to look after national interests”
Rudd said that if any bidder was attempting to take the company on price alone, the government would need to intervene, as a chairman of a public company was required to adhere to fiscal duties, “It’s the government’s job to look after national interests – I’ve always believed that.”
The company is set to announce a deadline for TransDigm, to make its own £7 billion bid binding. Meggitt’s board will put the proposed takeover deal to a shareholder vote on September 17 but suggested this could be delayed if TransDigm makes its own bid binding.