Government agrees deal to allow £6.3bn takeover of aerospace giant

The £6.3bn takeover of aerospace and defence giant Meggitt can now proceed after the US acquirer struck a deal with the UK government.

Business Secretary Kwasi Kwarteng has decided that the undertakings offered “mitigate the national security risks identified to an acceptable level”.

Parker Hannifin has committed to keep Meggitt’s headquarters in Coventry and increase UK-based R&D spending by at least 40% by 2026.

It has also agreed to match Meggitt’s sustainability targets of reducing net carbon emissions by 50% by 2025 and achieving net zero greenhouse gas emissions by 2050.

Parker Hannifin’s chairman and chief executive Tom Williams said: “We have also agreed to substantial legally binding commitments, which underscore our deep commitment to the UK.

“As we move closer to the completion of the acquisition and the combination of these two strong businesses, we look forward to welcoming the Meggitt team to Parker.”

The takeover is now expected to close in the current quarter.

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