Chemring takeover talks collapse

Acquisition talks between UK countermeasures and munitions specialist Chemring Group and US private equity company Carlyle have collapsed, the companies announced on 7 November.

The confirmation that talks had ended came two days ahead of a UK takeover deadline of 9 November.

The existence of talks between Chemring and Carlyle first emerged on 17 August following what the UK organisation described at the time as a "highly preliminary expression of interest in relation to a possible offer". London-listed Chemring has a market cap of around GBP490 million (USD783 million).

News that discussions had collapsed followed a number of extensions to a takeover deadline, although it appears that the chance of a successful outcome had been decreasing since mid-October.

Chemring CEO David Price resigned with immediate effect on 23 October, with Mark Papworth appointed to take over the top job. He took over as CEO on 5 November, joining Chemring from oil and gas company Wood Group.

The appointment of Papworth – who Chemring said had a "track record of positioning businesses to focus on long-term growth" – appeared to indicate that the board of the UK group was aiming to continue as an independent business.