Consultations on the proposed acquisition of Meggitt plc, a UK aerospace company, by Parker-Hannifin have been launched today
Two separate consultations have been launched today (28 June 2022) related to the proposed acquisition of Meggitt plc, a UK aerospace company, by Parker-Hannifin.
The consultations are to address both the national security and competition concerns raised by the proposed deal.
Parker-Hannifin is a US-headquartered company which supplies components to the mobile, industrial and aerospace markets globally, including in the UK. It is listed on the New York Stock Exchange.
The Business Secretary is minded to accept undertakings offered by Parker-Hannifin to address the concerns.
This decision follows advice from the Ministry of Defence and the Competition and Markets Authority.
The proposed undertakings are now out for public consultation until 11:45pm on 13 July 2022, in accordance with the process set out in the Enterprise Act 2002.
No decision will be taken by the Business Secretary until the consultation has concluded and the representations have been carefully considered.
The full text of the proposed national security undertakings can be found on GOV.UK. In summary they would deliver:
The full text of the proposed competition undertakings can be found on GOV.UK. In summary they would deliver the divestment of Parker’s aircraft wheels and brakes (‘AWB’) division (the ‘Divestment Business’) to a purchaser approved by the Secretary of State. The Divestment Business includes:
These decisions on the national security and competition considerations are separate to any discussions on the wider economic implications of the proposed merger.
The Business Secretary’s decisions are made in a quasi-judicial capacity, which means that the Secretary of State must act, and be seen to act, in a scrupulously fair and impartial manner.