Meggitt PLC (LSE:MGGT) has recommended a £6.3bn takeover offer agreed with US firm Parker-Hannifin (NYSE:PH) Corporation.
Corresponding to 800p per share, it represents a premium of 70.5% to Friday’s closing price.
The two engineering groups both have a significant presence in the UK and are defence suppliers to the UK and US governments.
Parker also signed legally binding commitments so that Meggitt will continue its contractual obligations to the UK government, keep its headquarters and protect jobs in the country.
It will also pursue existing targets of halving net carbon emissions by 2025 and achieving net-zero greenhouse gas emissions by 2050 across the existing Meggitt business.
The FTSE 250 group also released its interim results, where it said it is “cautiously optimistic” over its outlook as civil aerospace is gradually recovering.
Full-year revenue is forecast to remain broadly in line with 2020, though underlying operating profit will be ahead of last year.
In the six months ended 30 June, revenue tumbled 26% to £680mln, with underlying profit before tax down 43% to £48mln. Net debt was cut by 18% to £822mln.