Competition & Markets Authority
Helicopter services deal raises competition concerns
The CMA has found that CHC’s completed purchase of Babcock’s oil and gas offshore helicopter business raises competition concerns in the UK.
CHC and Babcock’s oil and gas offshore helicopter business (the Babcock Business) both provide offshore transportation in the oil and gas sector, taking workers to and from rigs in the North Sea.
The Competition and Markets Authority (CMA) identified competition concerns relating to the deal that, unless addressed, will mean that the merger will be subject to an in-depth Phase 2 investigation.
CHC and the Babcock Business are two of four suppliers in this field and compete against each other regularly to win contracts. The CMA is concerned that the loss of one of these four suppliers could lead to higher prices and lower quality services for customers.
Colin Raftery, CMA Senior Director, yesterday said:
Our investigation showed that CHC’s purchase of the Babcock Business would take out an important competitor. While oil and gas exploration in the North Sea is expected to decline over time , these are safety-critical services on which customers continue to spend hundreds of millions of pounds a year. It is therefore important that this deal is subject to more detailed scrutiny if our concerns aren’t addressed.
CHC must now submit proposals to address the CMA’s concerns within 5 working days. If suitable proposals are not submitted, the deal will be referred for an in-depth Phase 2 investigation.
For more information, visit the CHC / Babcock merger inquiry page.
Notes to Editors:
- For media enquiries, contact the CMA press office on 020 3738 6460 or email@example.com.
- CHC Group LLC (CHC) purchased the entire issued share capital of Offshore Helicopter Services UK Limited (Babcock Offshore UK), Offshore Services Australasia Pty Ltd (Babcock Offshore Australia) and Offshore Helicopter Services Denmark A/S (Babcock Offshore Denmark).
- Under the Enterprise Act 2002 (the Act) the CMA has a duty to make a reference to Phase 2 if the CMA believes that it is or may be the case that a relevant merger situation has been created, or arrangements are in progress or contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition with any markets or markets in the United Kingdom for goods or services.
Latest News from
Competition & Markets Authority
CMA disqualifies pharma director11/01/2022 13:25:00
The CMA has secured the disqualification of a pharmaceutical company director, in connection with his involvement in illegal anti-competitive practices.
CMA Chief Executive confirms plan to step down in July 202206/01/2022 15:10:00
CMA Chief Executive Andrea Coscelli has confirmed he will step down from the role at the end of his current term in July 2022.
CMA action frees leaseholders from costly contract terms23/12/2021 09:15:00
Following CMA action, leaseholders with Taylor Wimpey will no longer be subjected to ground rents that double every 10 years.
CMA provisionally finds lighting firm illegally banned discounts17/12/2021 12:20:00
The CMA has provisionally found that Dar Lighting Limited has broken competition law by preventing retailers from offering discounts online.
Apple and Google duopoly limits competition and choice14/12/2021 12:15:00
The CMA’s interim report into mobile ecosystems suggests that users are losing out because of Apple and Google’s duopoly.
Dye & Durham’s purchase of TM Group could reduce competition09/12/2021 12:20:00
The CMA has found that Dye & Durham’s purchase of TM Group raises competition concerns and may now be referred for an in-depth investigation.
CMA finds Veolia / Suez merger raises competition concerns07/12/2021 12:20:00
The CMA has found that the merger of Veolia and Suez could lead to a loss of competition in the supply of several waste and water management services in the UK.
Joint Statement from UK Competition and Markets Authority, U.S. FTC and DOJ Antitrust Division leadership following the G7 Competition Enforcers Summit03/12/2021 16:35:00
Leadership of the Federal Trade Commission and the Antitrust Division of the Department of Justice attended meetings in London this week as part of the Competition Enforcers Summit, which took place under the 2021 G7 Digital and Technology Track in connection with the UK’s G7 presidency.