Archer Limited has signed a term sheet with Baker Hughes to potentially acquire Baker Hughes’ coil tubing and pumping (“CT&P”) business in the United Kingdom.
"The CT&P business fits well within Archer’s overall strategy to grow our drilling and well services in the UK and to further grow our integrated P&A service offering, Archer said.
Baker Hughes is divesting the CT&P business as a part of a remedy package offered to the UK Competition and Markets Authority (“CMA”), in relation to its acquisition of Altus Intervention.
The CMA said in November that Baker Hughes' acquisition of Altus Intervention could reduce competition among UK oil and gas operators. The regulator said it was concerned that the loss of rivalry between the merging companies could lead to higher prices, reduced choice, and lower quality services for businesses in the UK that purchase coiled tubing and pumping services.
Archer said Tuesday that the CMA was undertaking a public consultation process with Archer and one other potential purchaser, which is expected to conclude by February 1, 2023.
The contemplated transaction is subject to Archer being selected as the preferred purchaser by Baker Hughes, definitive agreements, final approval by the CMA, and Archer Board approval.