The UK government has launched an investigation into the takeover of aerospace parts manufacturer Meggitt by US technology firm Parker-Hannifin Corporation, citing national security concerns.
The UK commerce department on Monday evening (18/10) announced the referral to the UK competition watchdog. The recently announced deal is worth $8.7 billion.
In response, Meggitt on Tuesday (19/10) said “continue to expect that the acquisition will be completed in the third quarter of 2022.”
Meanwhile, the Competition and Markets Authority was asked to investigate and report its findings before then, in mid-March next year.
In a statement on Monday, the government said UK Commerce Secretary Kwasi Kwarteng “believes that national security considerations of public interest are appropriate” in relation to the takeover.
Parker promised a number of legally binding commitments to the UK government regarding his cash deal, such as ensuring that Meggitt fulfills his current obligations to the country.
It comes as Britain has ordered an investigation into the US-owned Cobham’s takeover of British defense technology company Ultra Electronics, in order to assess the risks to national security. [ps/jm]