Predators hunting down rich pickings in aerospace

摘要

After 18 months of pandemic-induced inactivity, merger mania appears to be back in aerospace and defence. But not all are happy with what it might mean for key national security assets and jobs.Recent weeks have seen two big UK names subject to takeover swoops. Defence contractor Ultra Electronics on 16 August accepted a £2.6 billion ($3.6 billion) bid from fellow UK company Cobham, itself controversially acquired by private equity firm Advent International in early 2020 for £4 billion.Meanwhile, Parker Hannifin - 32nd in FlightGlobal's latest Top 100 ranking - revealed on 2 August plans to snap up fellow top 50 player UK-headquartered Meggitt (44th) for £6.3 billion. Meggitt's board accepted the bid, only for highly-acquisitive Trans-Digm (20th) to trump its US rival with an unsolicited cash approach worth £7 billion.Meggitt directors are recommending the Parker Hannifin bid as "an attractive proposition for shareholders and... broader stakeholders", including the UK government.The UK's takeover panel gave TransDigm until 14 September to persuade shareholders otherwise with a formal offer.The moves by Cobham and TransDigm worry some concerned about the country's sovereign defence capabilities, and commitments to domestic employment and research and development (R&D) investment.