Competition & Markets Authority
Offshore accommodation merger abandoned
Prosafe has abandoned its proposed deal with Floatel after an in-depth CMA merger probe highlighted serious competition concerns.
The Competition and Markets Authority (CMA) has therefore today confirmed that it will be cancelling its Phase 2 merger investigation into the deal.
Both companies supply semi-submersible offshore accommodation support vessels (semi-submersible ASVs) to oil and gas companies. These are used to provide accommodation space for employees working offshore and are a key facility for some types of work in the UK Continental Shelf and the Norwegian Continental Shelf; for example, where the water is deep or where weather conditions are harsh and other types of vessel are not suitable.
The CMA launched a Phase 2 inquiry in September 2019 after initial competition concerns led to the proposed merger being referred to a group of independent CMA panel members for an in-depth investigation.
The CMA provisionally found in January 2020 that the merger may result in a substantial lessening of competition and customers may face higher prices, and/or lower quality when tendering for semi-submersible ASVs. The CMA had proposed that blocking the merger would be the only way of addressing these concerns.
This was one of several global mergers being investigated by the CMA. It worked with the Norwegian Competition Authority (NCA) on this case as it carried out a separate review into the deal. The NCA’s decision to block the merger was being appealed to the Norwegian Competition Tribunal. As the CMA prepares to take on more global mergers alongside other regulators, this kind of global co-operation will become increasingly important.
Prosafe and Floatel have now decided not to continue with the deal. For more information, visit the Prosafe SE / Floatel International Limited merger inquiry web page
Latest News from
Competition & Markets Authority
Payment software deal does not raise competition concerns19/02/2020 09:20:00
Payments company Bottomline’s purchase of Experian Payments Gateway does not raise competition concerns, an in-depth CMA investigation has provisionally found.
Latest results published in current account customer satisfaction survey18/02/2020 09:20:00
Following a survey of thousands of customers, the fourth set of current account customer satisfaction results were published yesterday.
CMA to examine water regulator’s price review after appeals17/02/2020 09:10:00
Following appeals from water companies, the CMA will consider Ofwat’s proposed 2020-25 price control.
CMA demands action after Tesco blocks rival supermarkets14/02/2020 15:10:00
The CMA is calling on major supermarkets to act after finding Tesco has been unlawfully stopping rivals from opening shops near its stores.
Deal between Google and Looker given the go-ahead13/02/2020 14:15:00
Following a thorough review, the CMA has cleared Google LLC’s (Google) purchase of Looker Data Sciences, Inc. (Looker).
Shoppers could lose out in sports fashion merger12/02/2020 12:20:00
The CMA has provisionally found that JD Sports’ takeover of close competitor Footasylum could leave shoppers worse off, both in-store and online.
CMA provisionally finds competition concerns in airline booking merger10/02/2020 09:20:00
An in-depth investigation has provisionally found that Sabre’s proposed takeover of Farelogix raises competition concerns.
CMA to issue consumer law guidelines for the IVF sector07/02/2020 15:20:00
The CMA is developing guidance for IVF clinics in the UK to make sure they treat their patients fairly.