(Alliance News) - The UK competition regulator on Thursday said CHC Group LLC's purchase of Babcock International Group PLC's oil and gas offshore helicopter transportation services business raises competition concerns.
Following a in-depth phase two merger investigation, the UK Competition & Markets Authority has provisionally found that the merger would lead to a "significant" loss of competition in the market.
"We're concerned that this merger will reduce competition in a market which currently only has 4 competitors and that is vital to the smooth running of the North Sea oil and gas industry," said Kip Meek, chair of the CMA inquiry group.
The findings are currently provisional and the CMA is welcoming responses from the companies as well as other interested parties. The watchdog will make a final decision on the deal by May 15.
Shares in Babcock were down 0.8% at 327.50 pence in London on Thursday.
By Lucy Heming; lucyheming@alliancenews.com
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Babcock (BAB)
