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UK intervenes in bid by U.S. aviation firm Parker for Meggitt By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: A general view of London’s Big Ben clock tower on August 17, 2021. REUTERS/Hannah McKay

LONDON (Reuters] – The United Kingdom said Monday it will intervene in a proposed 6.3 billion-pound (or $8.65 Billion) takeover of British engineering and aerospace company Parker-Hannifin (NYSE :). Meggitt (LON) Citing national security grounds.

Kwasi Kwarteng the business minister issued an so-called “intervention note” in review of the effect of the takeover.

Kwarteng declared that “The UK remains open for business”, but added that they will be taking steps to ensure our national security when required.

Parker-Hannifin claimed in August that it had bought London-listed Meggitt. In an effort to quell concerns, the company also made a list of commitments to UK workers.

American investors are currently looking to buy British businesses that have fallen in value after the COVID-19 pandemic, and Brexit.

Nvidia Corp (NASDAQ:) Corp’s plan for a $40 billion purchase of chip design firm ARM ran into difficulties in August. An investigation by the British regulator revealed that it might harm competition and weaken other competitors. This led to a long-running probe.

Parker-Hannifin representatives stated that they look forward to working closely with the government in order to bring the transaction review to a satisfying conclusion.

The spokesperson stated that they expect the transaction to close in Q3 2022. He also said that they will not comment further on regulatory processes.

($1 = 0.7283 pound)

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