UK aerospace and defence company Meggitt is to be taken over by US rival Parker Hannifin in a £6.3bn deal that marks the latest approach for a UK listed company by an overseas buyer.

Meggitt shareholders will receive 800p per share in cash in the agreed deal, representing a premium of 71 per cent to Friday’s closing price.

Parker, which employs more than 2,100 staff at 18 sites across the UK, praised Meggitt’s “high value” technologies and said the deal would “enhance the future prospects of the combined group within global aerospace and defence industries”.

Tom Williams, chair and chief executive at Parker, said: “We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt’s board.”

Parker Hannifin said it had made a number of commitments to the UK government, including keeping a UK head office and maintaining “existing R&D, product engineering and direct manufacturing labour headcount in the UK at no less than current levels, while increasing by at least 10 per cent”.

The deal is the latest in a string of takeovers of UK companies by US competitors: last month, defence group Ultra Electronics signalled it was “minded to recommend” a provisional £2.6bn takeover offer from US private equity-backed company Cobham.

Read more/Source: The Financial Times