CMA clears Chemring's Wallop acquisition

29th Mar 2016 15:19

(ShareCast News) - The Competition and Markets Authority has cleared defence company Chemring's acquisition of a business and certain assets of Wallop Defence Systems.The CMA said on Tuesday that based on the information currently available, it has decided not to refer the transaction to a Phase 2 investigation.Chemring announced back in November that it had reached an agreement with Esterline Corporation to buy patents, equipment, stock and selected contracts relating to its UK-based subsidiary, Wallop Defence Systems, for an initial cash consideration of £2.5m.The assets relate to air countermeasures and pyrotechnic products that will be manufactured at Chemring's existing UK operations.At 1527 GMT, Chemring shares were up 4.8% to 132p.