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Following advice from the Ministry of Defence and the Competition and Markets Authority and after reviewing the results of two separate聽consultations, the Business Secretary has today (Tuesday 19 July) cleared the acquisition of Meggitt by Parker-Hannifin to proceed.

皇冠体育app announcement follows the Business Secretary consulting on steps to address the national security and competition concerns raised by the proposed acquisition of Meggitt, a UK aerospace company, by Parker-Hannifin, a US-listed company which supplies components to the mobile, industrial and aerospace markets globally. 皇冠体育app government consultation on the undertakings offered by the companies to address the concerns identified ran until 13 July 2022.

皇冠体育app Business Secretary has now accepted undertakings from the parties to mitigate national security risks and competition concerns.

皇冠体育app undertakings to mitigate the national security concerns came into force today and details are available in the decision notice. In summary, the undertakings are:

• Security of Supply: ensuring that Parker will commit to honouring existing contracts while they are in place and will notify the鈥�MOD鈥痠n advance if there is a material change to Meggitt鈥檚 ability to supply the鈥�MOD
• Information Security: reinforcing the commitment to existing List X / Facility Security Clearance site security arrangements protecting sensitive鈥疕M鈥痝overnment information in Meggitt, including a requirement to retain a majority of the Board of Directors of Meggitt as UK nationals resident in the UK
• Sovereign UK Capabilities: requiring Parker-Hannifin to institute an鈥疕M鈥痝overnment-approved control plan to prevent International Traffic in Arms Regulations (ITAR) controls applying to鈥�ITAR-free products designed and manufactured by Meggitt. 皇冠体育app undertakings would allow the鈥�MOD鈥痶o add new technology to future-proof the remedy

皇冠体育app undertakings to mitigate the competition concerns also came into force today and details are available on the decision notice. In summary, the undertakings will deliver the divestment of Parker鈥檚 aircraft wheels and brakes (鈥楢WB鈥�) division (the 鈥楧ivestment Business鈥�) to a purchaser approved by the Secretary of State. 皇冠体育app Divestment Business includes:

• all tangible assets (including the production site of the鈥疉WB鈥痙ivision located at Avon, Ohio,鈥疷SA, as well as the relevant inventory and equipment) and intangible assets (including intellectual property rights)
• all licences, permits, authorisations issued by any governmental organisation for the benefit of the Divestment Business
• all contracts, leases, commitments, and customer orders of the Divestment Business
• all customers credit and other records of the Divestment Business
• all staff currently employed by the Divestment Business, including staff seconded to the Divestment Business, shared personnel as well as certain additional personnel

Separately from the competition and national security issues, Parker-Hannifin has provided economic undertakings to the Secretary of State. It has committed to the following:

• Parker-Hannifin will continue to use the Meggitt name in combination with its own and will retain Ansty Park as its UK headquarters and its centre of excellence for aerospace and advanced materials
• It will increase R&D activity including undertaking research and technology projects relating to sustainable aviation and net zero.
• It will protect jobs.

皇冠体育appse undertakings, which were voluntarily provided by Parker-Hannifin, secure the future of Meggitt and the important role it plays in the UK aerospace sector.