(Alliance News) - Meggitt PLC on Tuesday noted that UK government has referred its takeover by Parker-Hannifin Corp to the competition regulator on national security grounds.
UK Secretary of State for Business, Energy & Industrial Strategy Kwasi Kwarteng on Monday issued a public interest intervention notice to intervene in the proposed transaction.
As a result, the UK Competition & Markets Authority is required to investigate the proposed transaction and submit a report by March 18, 2022.
Meggitt on Tuesday said it looks forward to "engaging constructively" with the CMA and still expects the deal to complete in the third quarter of 2022.
Shares in Meggitt were 0.2% lower in London on Tuesday morning at 748.00 pence each.
In early August, the Coventry, England-based aerospace components maker had accepted an 800p per share takeover offer - worth GBP6.3 billion in total - from Parker-Hannifin.
Although there was a rival bid from Cleveland, Ohio-headquartered aerospace manufacturer TransDigm Group Inc worth 900p per share, or GBP7.03 billion, Meggitt's board continued to recommend shareholders to accept the Parker-Hannifin deal, until TransDigm dropped the bid in September.
In late September, Meggitt shareholders almost unanimously backed the deal.
In mid-August, Kwarteng ordered a similar probe into the takeover of Ultra Electronic Holdings PLC by former London listing Cobham Group Holdings Ltd, giving the CMA until January 18, 2022 to investigate the proposed deal.
By Paul McGowan; paulmcgowan@alliancenews.com
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