The UK Government has ordered an investigation of the planned $8.7bn takeover of British company Meggitt by US-based Parker Hannifin on national security grounds.

The UK Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng issued a public interest intervention notice regarding the planned acquisition and asked the Competition and Markets Authority (CMA) to prepare a report.

The CMA will assess the potential consequences of the deal and determine if it will lessen competition in any market within the UK for goods or services.

It is expected to submit the report by 18 March 2022.

Meanwhile, interested parties can submit their responses on the impact of the transaction to the CMA by 19 November 2021. The final report will include a summary of these representations.

The move by the government represents the first phase of assessment. The UK Secretary of State will make the final decision and may recommend a Phase 2 assessment of the transaction, if necessary.

Separately, Meggitt announced that it has noted the government announcement. The company said that it is looking forward to engaging constructively with the CMA on its review.

Despite the review, Meggitt added that it still expects the acquisition to be completed in the third quarter of 2022.

Notably, the acquisition was announced in August this year.

Last month, Meggitt shareholders approved the transaction.

Meggitt is an engineering company operating in the aerospace, defence and energy markets. It employs more than 9,000 people.