£6.3bn Meggitt sale takes major step forward
The £6.3bn deal to sell Meggitt, the Ansty-based manufacturer of components for the power and aerospace industries, to US-based Parker-Hannfin has taken a significant step forward this morning (June 29) after two separate consultations to address national security and competition concerns were launched.
In a statement this morning, Business Secretary Kwasi Kwarteng said he “is minded to accept undertakings” offered by Parker-Hannifin to address the concerns.
This decision follows advice from the Ministry of Defence and the Competition and Markets Authority.
The consultation will last until 11:45pm on 13 July 2022.
Parker Hannifin has given assurance on national security issues, including:
Security of supply: ensuring that Parker will commit to honouring existing contracts while they are in place and will notify the MOD in advance if there is a material change to Meggitt’s ability to supply the MOD
Information security: reinforcing the commitment to existing List X/Facility Security Clearance site security arrangements protecting sensitive HM government information in Meggitt, including a requirement to retain a majority of the Board of Directors of Meggitt as UK nationals resident in the UK
Sovereign UK capabilities: requiring Parker-Hannifin to institute an HM government-approved control plan to prevent International Traffic in Arms Regulations (ITAR) controls applying to ITAR-free products designed and manufactured by Meggitt. The undertakings would allow the MOD to add new technology to future-proof the remedy
Parker chairman and chief executive officer, Tom Williams, said: “We are pleased that following very constructive engagement with the UK Government, the Secretary of State is minded to accept the national security and competition undertakings we have offered as part of our pending acquisition of Meggitt. The combination of Parker and Meggitt is an exciting opportunity for both companies and we look forward to welcoming Meggitt to the Parker team.”