£6.3bn deal to sell Meggitt takes a step closer
The £6.3bn deal to sell Meggitt, the Ansty-based manufacturer of components for the power and aerospace industries, has taken a step closer following after it won the backing of the European Commission.
The Commission released a statement yesterday (April 11) saying that the proposed deal met its competition requirements.
The deal to sell Meggitt has been on hold for several months after the UK Government issued a public intervention notice over Parker-Hannifin’s takeover attempt, which was announced last August. Then, the takeover came with some caveats tied in because of the sensitive work Meggitt undertakes for the UK Government.
Parker outlined a series of commitments, including ensuring that the majority of board directors of Meggitt will be UK nationals, keeping Meggitt’s headquarters in Ansty and retaining current numbers of staff and R&D spend.
The Government’s intervention meant that the Competition and Markets Authority would look if the deal presented a risk to national security.
Business Secretary Kwasi Kwarteng is still to rubber seal the deal, which will see Parker sell its Ohio-based aircraft wheel and brake division.
The European Commission’s statement read: “The remedy package offered by Parker will preserve competition in these markets and ensure that aerospace and defence customers have access to sufficient choice of component suppliers and will continue benefiting from competitive prices.”
The CMA has concluded its report to Kwarteng, but he has yet to make any further comment on the deal.
