Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Meggitt Soars As Parker Makes $8.75 Billion Deal For Defense Play

Stock MarketsAug 02, 2021 18:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – Meggitt (LON:MGGT) ADR (OTC:MEGGY) soared 57% Monday after an all-cash acquisition offer from Parker-Hannifin (NYSE:PH) for a bigger stake in the defense industry.

At 8 pound sterling per Meggitt share, the offer values the U.K. company at 6.3 billion pound sterling (approximately $8.75 billion).   

Parker stock dipped 0.7%. There are concerns that the U.K. government may take a closer look at the deal given the sensitive nature of the transaction.

Meggitt is a market-leading industry provider of braking systems for commercial, business and defense aircraft, fire protection and safety systems, power and motion, fuel systems, avionics and sensors and advanced polymer seals.

The company’s defense business accounts for 46% of group revenue with over 70% of it derived from its core U.S. market.

Parker expects the combination to be earnings accretive in the first full 12 months after closing.

The acquirer expects the acquisition to achieve $300 million of pre-tax synergies from its combination with Meggitt.

Parker expects the combination to be earnings accretive in the first full 12 months after closing.

 

Meggitt Soars As Parker Makes $8.75 Billion Deal For Defense Play
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email