(Alliance News) - Parker-Hannifin Corp on Wednesday said UK Secretary of State for Business, Energy & Industrial Strategy Kwasi Kwarteng is "minded to accept" its proposed undertakings on competition and national security matters to allow its acquisition of defence contractor Meggitt PLC.
Late Tuesday, the UK government said Parker-Hannifin, a Cleveland-Ohio based engineering and aerospace company, has addressed competition and national security concerns over its GBP6.3 billion takeover of its Coventry, England-based peer. "The business secretary is minded to accept undertakings offered by Parker-Hannifin to address the concerns. This decision follows advice from the Ministry of Defence and the Competition & Markets Authority," the UK government said.
The government added Business Secretary Kwarteng proposes to accept Parker's undertakings but has launched public consultations and will wait until the consultation period concludes on July 13 before making a final decision.
"The acquisition remains subject to satisfaction of the conditions set out in the scheme document, including regulatory clearances," Parker-Hannifin added. In May, it sold its Wheel & Brake Division to Connecticut-based aerospace firm Kaman Corp for an undisclosed sum, fulfilling a condition to receive regulatory approval from the EU. In April, Parker-Hannifin announced unconditional approval of the deal from competition authorities in Australia, Singapore, Saudi Arabia, Denmark, Germany, Italy and Turkey.
Parker-Hannifin expects the takeover to be completed in the third quarter of 2022.
Meggitt shares were 0.6% higher at 789.60 pence each in London on Wednesday morning. Parker-Hannifin is paying 800p per share.
By Tom Budszus; tombudszus@alliancenews.com
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