Meggitt is a United Kingdom-based defense and aerospace company. The company has agreed upon an $8.8 billion deal wherein the American Firm Parker Hannifin will take over Meggitt. This is not the first incidence of acquisition of a British company by an American rival.
On August 2, Meggitt made the deal public showcasing the company’s effort in executing the acquisition. Parker Hannifin, based in Cleveland, United States, also agreed to the commitments ensuring the temporary market presence of Meggitt. The United Kingdom is fenced with new concerns associated with the future ownership of Britain’s aerospace and defense sector.
As Meggitt has closer ties with the U.K.’s rich heritage with a well-established network of key stakeholders, Parker Hannifin has chosen to agree to the legally binding commitments.These commitments include an effort to maintain Meggitt’s existing research and development cost structure in the U.K. According to the agreement, industry growth is needed to keep up with the existing levels. In addition, aerospace industry growth activity will be expected to increase at the least by 20% in the coming five years.