Britain’s business minister Kwasi Kwarteng has approved the 6.3 billion-pound ($7.57 billion) takeover of London-based defence firm Meggitt by U.S. engineering and aerospace company Parker-Hannifin, his department said on Tuesday.
The deal was scrutinised by the government over competition and national security concerns, as Meggitt’s customers include Britain’s Ministry of Defence, Boeing, Airbus and Rolls-Royce.
On Tuesday, the business department said that its decision to clear the deal had come after advice from the MoD and the competition regulator, and following two separate consultations.
The department said it had accepted undertakings from Parker to mitigate national security risks and competition concerns, and that the assurances “secured the future of Meggitt and the important role it plays in the UK aerospace sector.”
The commitments, which were given voluntarily by the New York Stock Exchange-listed company, included honouring existing contracts and notifying MoD in advance if there were any material changes to Meggitt’s ability to supply to the MoD.
The company has also promised to retain Ansty Park in Coventry – a city in central England – as its British headquarters, increase its research and development activity and protect jobs.
The deal was part of a flurry of transactions involving U.S. companies looking to take over their British rivals due to cheaper valuations in the post-Brexit era.
