Brussels, 11/08/2004 (Agence Europe) - The European Commission has granted clearance under the Merger Regulation to the proposed acquisition of Alvis plc, a UK-based manufacturer of armoured combat vehicles, by UK defence contractor BAE Systems. The transaction does not raise competition concerns in Europe since BAES is not a major prime contractor and manufacturer of ACVs (armoured combat vehicles), overlaps are limited and other large and capable players compete in the market. BAES and Alvis have overlapping activities for weapon systems, specifically in the segment for turreted mortar systems, which are indirect fire weapons, mounted on the ACV vehicle chassis. Such systems face significant competition from non-turreted mortars and that the parties' turreted mortar solutions differ significantly from each other in both price and capabilities. The market investigation also indicated that sufficient viable alternatives will remain post-merger for both newly developed and off-the-shelve mortar systems.