EU watchdog approves foreign takeover of British firm Meggitt
Brussels has given its blessing to a £6.3bn takeover of British defence company Meggitt by a US buyer.
Regulators raised competition concerns because both Meggitt and US suitor Parker are key aerospace manufacturers which supply aircraft wheels, brakes and aerospace pneumatic valves.
The marriage is yet to receive the approval of Kwasi Kwarteng, the UK’s Business Secretary, who has raised national security concerns.
“The remedy package offered by Parker will preserve competition in these markets and ensure that aerospace and defence customers have access to sufficient choice of component suppliers and will continue benefitting from competitive prices,” said Margrethe Vestager, the EU’s antitrust watchdog.
Parker has agreed to sell off an Ohio factory to divest its entire aircraft wheels and brakes division.
Kwarteng called for an investigation into the deal by the Competition and Markets Authority (CMA). The competitions watchdog last month handed its findings to Kwarteng, who will determine whether the deal can go ahead.
Concerns about the takeover of military engineering firms by foreign rivals are not restricted to the Meggitt takeover.
Kwarteng is also mulling whether to give approval to £2.6bn proposed takeover of Ultra Electronics, a company which supplies parts to the Royal Navy’s nuclear submarine fleet, by a US equity firm.
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