Meggitt UK defence and aerospace firm agree 63b takeover

Meggitt, has agreed a £6.3 billion takeover by American firm Parker-Hannifin.

The defence and aerospace technology firm which is listed as a FTSE 250 company confirmed the offer from the US engineering technology giant.

The takeover bid valued Meggitt at 800p per share and shares soared by 60% in early trading on Monday following the announcement.

It said the move represents a 70% premium on the share value of the company at the end of trading on Friday July 30, when it was at 469.1p per share.

Parker, which already has operations in the UK employing around 2,000 people, has committed to maintain its UK headquarters in Coventry.

Today we announced our recommended cash acquisition of Meggitt PLC. Click through to read more. https://t.co/OR4DozH8WH

â€" Parker Hannifin (@ParkerHannifin) August 2, 2021

It also agreed to continue to meet Meggitt’s government contractual obligations with the department of defence.

The buyer will continue with the firm’s investment in UK research and development with plans to increase the investment by 20% over the next five years.

Parker-Hannifin chairman and chief executive Tom Williams said: “We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt’s board.

“We fully understand these responsibilities and are making a number of strong commitments that reflect them.

“During our longstanding presence in the UK we have built great respect for Meggitt, its heritage, and its place in British industry.”

Meggitt chairman Sir Nigel Rudd said: “Meggitt is one of the world’s foremost aerospace, defence and energy businesses, leading the market with a strong portfolio of technology and manufacturing capabilities, and holding a significant amount of intellectual property.

“Whilst Meggitt is currently pursuing a strong, standalone strategy which will deliver value to shareholders over the long term, Parker’s offer provides the opportunity to significantly accelerate and de-risk those plans, while continuing to deliver for shareholders.”

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