Good morning, and welcome to our live, rolling coverage of the business, economics and financial markets.
British aerospace manufacturer Ultra Electronics And magit Both have taken a step towards the exit FTSE 250 on Monday seemed likely to seize two venerable companies in the form of American money.
Ultra, which makes parts for fighter jets as well as submarine-hunting Sonobuoys, announced Monday that it has agreed to a takeover cobham, an aerospace manufacturer owned by American private equity firm Advent International. The deal valued Ultra’s shares at £2.6bn.
magit, which advances parts including wheels, brakes and fire suppression systems for military and civilian jets with an agreed acquisition by US manufacturer Parker Hannifin, on Monday without waiting for details of a potential rival bid from TransDigm, another US aerospace company Publishes proposal documents. . TransDigms has said it is considering a 900p-per-share bid for Parker’s agreed 800p deal.
The two deals together will mark an extraordinary period in the British stock market for aerospace companies and indeed for mid-sized UK companies that have been the object of a buying spree that is unprecedented in many ways.
Private equity buyers (such as Advent) are particularly able to trade at valuations that are incomprehensible to investors in the public markets, due to historically low borrowing costs. were in the first half of 2021 More private equity-backed acquisitions of UK companies At least by value compared to at any point since 2005.
Cobham’s deal with Ultra, at £35 per share, would result in a 63% premium to its share price before the interest was announced. Both Cobham and Ultra said they would engage with the UK government on potential national security issues, as people close to Trade Secretary Quasi Quarteng indicated he would pay close attention to the deal.
Along with Ultra and Megit, there are more signs that British Aerospace is underutilized. Rival manufacturer Sr. turned down an approach from private equity bidders in June, while Advent is selling parts of Cobham – Advent reached a deal with Cobham only in December 2019, after months of wrangling some assurances were given to the British government . job in uk.
work schedule
1:30 a.m. BST: US New York Federal Reserve Manufacturing Index
.