The United Kingdom intervenes in the offer of the American aircraft manufacturer Parker for Meggitt

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LONDON, Oct. 18 (Reuters) – Britain on Monday announced it was part of a £ 6.3bn ($ 8.65bn) buyout plan by the US aerospace and engineering firm Parker-Hannifin (PH.N) from his British rival Meggitt (MGGT.L), citing national security grounds.

Business Minister Kwasi Kwarteng issued a “notice of intervention” to examine the impact of the takeover.

“The UK is open for business, but we will take action to protect our national security if necessary,” Kwarteng said.

Parker-Hannifin said in August that she had agreed to buy London-listed Meggitt and pledged a series of commitments, including on UK jobs, in a bid to allay concerns about the OK.

The planned takeover was the latest by US investors for UK companies whose prices have become attractive after the COVID-19 pandemic and Brexit that hit the value of the pound.

In August, Nvidia Corp’s (NVDA.O) planned $ 40 billion acquisition of chip designer ARM ran into problems when a UK regulator discovered it could hurt competition and weaken its competitors, requiring a thorough investigation.

A Parker-Hannifin spokesperson said the company was eager to engage with the government and “bring the transaction review to a satisfactory conclusion.”

“We continue to expect the transaction to close in the third quarter of 2022 and will not offer any further comment on regulatory processes,” the spokesperson said.

($ 1 = 0.7283 pounds)

Reporting by William James and William Schomberg Editing by Andrew MacAskill and Giles Elgood


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