(Adds business minister and Parker-Hannifin comment)
LONDON, Oct 18 (Reuters) - 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.
The business minister Kwasi Kwarteng issued a so-called
"intervention notice" to review the impact of the takeover.
"The UK is open for business, however we will take steps to
protect our national security when necessary," Kwarteng 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.
A Parker-Hannifin spokesperson said the company looked
forward to engaging with the government and "bringing the review
of the transaction to a satisfactory conclusion".
"We continue to expect that the transaction will close in Q3
2022 and will not offer any further comment on regulatory
processes," the spokesperson said.
($1 = 0.7283 pound)
(Reporting by William James and William Schomberg
Editing by Andrew MacAskill a nd Giles Elgood)