EU OKs Parker’s $8.2B Meggitt Buy

US engineering and aerospace group Parker-Hannifin on Monday won EU antitrust approval for its 6.3-billion-pound ($8.2 billion) acquisition of British manufacturer Meggitt after pledging to sell a factory in the United States.

The European Commission said the remedy addressed its competition concerns, confirming a Reuters story on April 1.

The American 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.

“The remedy package offered by Parker will preserve competition in these markets and ensure that aerospace and defense customers have access to sufficient choice of component suppliers and will continue benefiting from competitive prices,” the EU antitrust watchdog said in a statement.

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.

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