MAYFIELD HEIGHTS, Ohio—The United Kingdom government has given the official go-ahead for Parker-Hannifin Corp.'s $7.7 billion acquisition of aerospace and defense company Meggitt P.L.C.
"We are pleased to have reached this important clearance milestone from the U.K. Secretary of State," Tom Williams, Parker's chairman and CEO, said in a statement. "We have also agreed to substantial legally binding commitments, which underscore our deep commitment to the U.K. As we move closer to the completion of the acquisition and the combination of these two strong businesses, we look forward to welcoming the Meggitt team to Parker."
Business Secretary Kwasi Kwarteng said approval of the deal follows review of advice from the U.K. Ministry of Defence and the Competition and Markets Authority.
The deal was scrutinized by the government "over competition and national security concerns, as Meggitt's customers include Britain's Ministry of Defence, Boeing, Airbus and Rolls-Royce," the Reuters news service noted.
Mayfield Heights-based Parker, a maker of motion and control products, supplies components to the mobile, industrial and aerospace markets globally. The boards of Parker and Meggitt in August 2021 approved the all-cash acquisition by Parker.
Kwarteng's announcement said his department 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 U.K. aerospace sector."