US aerospace tech group to buy UK peer for £6.3b

Parker-Hannifin Corporation, a US company specialised in aerospace technologies, has agreed to buy British peer Meggitt for £6.3 billion, the pair announced Monday.

Parker said it would offer a number of legally binding commitments to the UK government regarding the $8.8-billion cash deal, such as ensuring that Meggitt meets current contractual obligations to the state.It comes as the UK government monitors the takeover of UK defence technology firm Ultra Electronics by US-owned Cobham amid security concerns.

The Parker-Meggitt transaction is meanwhile subject to shareholder and regulatory approvals.”The boards of directors of Parker-Hannifin Corporation and Meggitt PLC are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition,” a statement said.

Tom Williams, chairman and chief executive officer of Parker, said that together the companies could better serve customers via innovation, accelerated research and development plus a complementary portfolio of aerospace and defence technologies.

“We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt’s board,” he added. Earlier this month, Ultra agreed to a £2.6-billion takeover from Cobham, the former London-listed defence giant.