(Alliance News) - Parker-Hannifin Corp on Monday announced it is selling its US Aircraft Wheel & Brake Division to fulfil a takeover condition set by the EU to buy UK aerospace components maker Meggitt PLC.
The announcement comes a month after Parker-Hannifin received conditional approval for the takeover from the EU. One condition was the divestment of its Ohio-based Aircraft Wheel & Brake division, which it is fulfilling with Monday's announcement. Connecticut-based aerospace firm Kaman Corp will buy the division for an undisclosed sum.
In April, Parker-Hannifin also announced unconditional approval of the deal from competition authorities in Australia, Singapore, Saudi Arabia, Denmark, Germany, Italy and Turkey.
Cleveland, Ohio-based Parker-Hannifin expects the GBP6.3 billion takeover of Coventry, England-based Meggitt to be completed in the third quarter of 2022.
The takeover is still awaiting the investigation being conducted by the UK Competition & Markets Authority, after the UK government referred the deal to the competition regulator on national security grounds.
Back in March, the CMA submitted its report to the UK Department for Business, Energy & Industrial Strategy, which will decide whether the transaction is deemed to be against the public interest.
Meggitt shares were 0.5% higher at 776.70 pence each in London on Monday afternoon.
By Tom Budszus; tombudszus@alliancenews.com
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