The board of Meggitt, the FTSE 250 engineering company, has unanimously recommended that shareholders accept the 800p-per-share takeover offer from Parker Hannifin.
The offer is at a 71% premium to Meggitt’s closing share price on Friday. Meggitt’s share price surged 60% to 750p at the start of trading on Monday as investors reacted to the news.
As part of the deal Parker has made a number of legally binding contractual commitments to the government to protect Meggitt’s operations.
These include keeping Meggitt’s headquarters in the UK, maintaining headcount in its research and development, product engineering and manufacturing operations, ensuring most of the company’s board are UK nationals, and increasing R&D expenditure by a fifth over the next five years.
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