Meggitt shareholders back Parker takeover

US-based Parker Hannifin Corporation, which has offered to buy the United Kingdom's Meggitt for GBP6.3 billion (USD8.6 billion), cleared a crucial hurdle on 21 September as Meggitt shareholders approved the deal.

The vote occurred two weeks after US-based TransDigm Group ended its bid for Meggitt, leaving Parker as the sole suitor.

Parker's proposal still requires regulatory approval. The UK Department for Business, Energy & Industrial Strategy (BEIS) said last month that the UK government is “closely monitoring” the proposed transaction, and has the power to intervene in takeovers that raise national security concerns.

Parker has offered to make several legally binding commitments to the UK government to preserve Meggitt's UK heritage and relationships with important stakeholders. Those commitments “underline our intention to be a responsible steward of Meggitt, and we are engaged with the UK government to finalise the commitments”, Parker chairman and CEO Tom Williams said after the Meggitt vote.

Despite the government scrutiny, Parker expects to close the deal in the third quarter of calendar year 2022.