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Exclusive-Parker set to gain EU antitrust approval for $8.3 billion Meggitt buy -sources

By Reuters

By Foo Yun Chee

BRUSSELS -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 U.S. factory to address competition concerns, people familiar with the matter said.

The U.S. 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.

Meggitt also supplies wheel and brake systems for military fighter programmes.

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.

The European Commission, which is scheduled to decide on the deal by April 11, declined to comment.

“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.

“We continue to expect that the transaction will close during Q3 2022. Otherwise, it’s not appropriate for us to comment further on the regulatory processes.”