18th Oct 2021 20:54
(Alliance News) - The UK government on Monday has ordered a probe into Meggitt PLC's GBP6.3 billion takeover offer by Parker-Hannifin Corp, on the grounds of national security concerns.
The UK Secretary of State for Business, Energy & Industrial Strategy Kwasi Kwarteng has 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 make a report by March 18, 2022.
"The Secretary of State believes that it is or may be the case that the national security public interest consideration specified in section 58(1) and (2) of the Act is relevant to a consideration of the relevant merger situation," the notice stated.
In early August, Coventry, England-based aerospace components maker had accepted an 800 pence per share or GBP6.3 billion takeover offer from Parker-Hannifin Corp.
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 had almost unanimously backed the deal.
In mid-August, Kwarteng had 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.
Shares in Meggitt closed 0.4% lower at 749.00p on Monday in London.
By Dayo Laniyan; [email protected]
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