Aerospace & Defence updates

UK aerospace and defence firm Meggitt is to be taken over by US rival Parker Hannifin in a £6.3bn deal that marks the newest method for a UK listed company by an abroad purchaser.

Meggitt shareholders will obtain 800p per share in money within the agreed deal, representing a premium of 71 per cent to Friday’s closing worth.

Parker, which employs extra 2,100 employees at 18 websites throughout the UK, praised Meggitt’s “excessive worth” applied sciences and mentioned the deal would “improve the longer term prospects of the mixed group inside world aerospace and defence industries”.

Tom Williams, chair and chief govt at Parker, mentioned: “We’re dedicated to being a accountable steward of Meggitt and are happy our acquisition has the complete assist of Meggitt’s board.”

Parker Hannifin mentioned it had made plenty of commitments to the UK authorities, together with maintaining a UK head workplace and sustaining “present R&D, product engineering and direct manufacturing labour headcount within the UK at at least present ranges, whereas rising by no less than ten per cent”.

The deal is the newest in a string of takeovers of UK corporations by US opponents: last month, defence group Extremely Electronics signalled it was “minded to suggest” a provisional £2.6bn takeover supply from US non-public equity-backed firm Cobham.