(Alliance News) - The UK Competition & Markets Authority on Friday said it is considering whether the acquisition by CHC Group LLC of Babcock International Group PLC's oil & gas aviation businesses will lead to a substantial lessening of competition in the UK.
The London-based aerospace, defence and nuclear engineering company announced the sale of its oil & gas aviation business in March. The business, part of Babcock's aviation segment, is headquartered in Aberdeen, Scotland and provides offshore oil and gas crew transportation services in the UK, Denmark and Australia.
Irving, Texas-based helicopter services company CHC purchased the businesses for GBP10 million, and the sale was completed in September.
The CMA has launched its merger inquiry by notice to CHC and Babcock on Thursday, and has a deadline of November 18 to make its phase one decision.
The regulator's invitation to comment also closes on October 7.
Shares in Babcock International were marginally lower at 378.70 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Babcock (BAB)
