UK intervenes in bid by U.S. aviation firm Parker for Meggitt
Parker-Hannifin said in August it had agreed to buy London-listed Meggitt and promised a series of commitments, including on UK jobs, in an attempt to fend off concerns about the deal. The planned takeover was the latest by U.S. investors for British firms which have become attractively priced after the COVID-19 pandemic and Brexit which hit the value of the pound.
Britain said on Monday it was intervening in a proposed 6.3 billion-pound ($8.65 billion) takeover by U.S. engineering and aerospace firm Parker-Hannifin of its British rival Meggitt, citing national security grounds.
"On 18 October 2021, acting on official advice, the Secretary of State issued a public interest intervention notice to intervene in the proposed transaction on national security grounds," the government said. Parker-Hannifin said in August it had agreed to buy London-listed Meggitt and promised a series of commitments, including on UK jobs, in an attempt to fend off concerns about the deal.
The planned takeover was the latest by U.S. investors for British firms which have become attractively priced after the COVID-19 pandemic and Brexit which hit the value of the pound. In August, Nvidia Corp's planned $40 billion acquisition of chip designer ARM ran into problems when a British regulator found it could damage competition and weaken rivals, requiring a further lengthy investigation.
($1 = 0.7283 pounds)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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