EU Set To OK Parker’s $8.3b Meggitt Buy

Parker-Hannifin is set to gain EU antitrust clearance for its 6.3 billion pound ($8.3 billion) bid for Britain’s Meggitt after offering to sell a US factory to address competition concerns, people familiar with the matter said.

The US engineering and aerospace group submitted its offer to the European Commission last month and the EU competition watchdog then sought feedback from rivals and customers.

Britain is probing the transaction, the latest by a U.S. buyer of a British firm, over national security concerns as Meggitt’s customers include Boeing, Airbus, Britain’s Ministry of Defence (MoD) and Rolls-Royce Parker had agreed to buy UK’s Meggitt after making a number of commitments, including on maintaining a number of jobs in the UK.

Meggitt also supplies wheel and brake systems for military fighter programmes, making the company vital for maintaining delicate supply chains in the defence industry.

The factory Parker is offering to sell is in Ohio, in the United States, and divesting it would resolve concerns about overlapping activities with Meggitt, one source told Reuters.

“We have been engaging with relevant authorities to obtain regulatory approvals and can confirm that we are in discussions about potential remedies with the European Commission,” a Parker spokesperson said.

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