Norway Mulls Blocking Prosafe's Floatel Acquisition

September 16, 2019

(Photo: Prosafe)
(Photo: Prosafe)

The Norwegian Competition Authority is considering blocking Prosafe's acquisition of its competitor Floatel International Ltd on the grounds that the combined firm would dominate its market, it said on Monday.

The two companies are the only providers of modern semi-submersible accommodation platforms on the Norwegian continental shelf, with limited competition, the NCA said.

"We fear that customers after the merger will have few or no competing suppliers when tendering for offshore accommodation services," NCA's deputy director Marita Skjaeveland said.

"Reduced competition would lead to increased costs for customers," she added.

Prosafe said the the merger would create "the world's largest offshore accommodation company". The firms have not revealed financial details of the deal, but the combined company would have had revenues of more than $600 million in 2018.

Oil and gas firms such as Equinor and Aker BP need to hire floating accommodation units when installing or maintaining offshore platforms.

The global oil market's downturn in 2014-2016 has led to fewer offshore projects, while companies have also pushed forward non-critical maintenance.

Prosafe and Floatel said they have already presented remedial measures to address competition concerns, but the NCS said these were insufficient to address the issue.

The companies have 15 days to respond further to the objections, while the NCA has until Oct. 28 to make a final decision, the authority said.

UK's Competition and Markets Authority have also raised concerns about the planned deal.


(Reporting by Nerijus Adomaitis; Editing by Jan Harvey)



Current News

Schlumberger Profit Beats Estimates

Schlumberger Profit Beats Estimates

Petrobras Posts Another Major Production Boost

Petrobras Posts Another Major Production Boost

Eni CEO: No Future for Firms Working in Just O&G

Eni CEO: No Future for Firms Working in Just O&G

TechnipFMC Wins EPCI Contract from Woodside

TechnipFMC Wins EPCI Contract from Woodside

Partners Plan Floating Wind Farm in South Korea

Partners Plan Floating Wind Farm in South Korea

Maersk Drilling Scores POSCO Contract

Maersk Drilling Scores POSCO Contract

Woodside Makes FID for Pyxis Hub Project

Woodside Makes FID for Pyxis Hub Project

Magazine

Offshore Engineer (Sep/Oct 2019)

This issue of Offshore Engineer is dedicated to Big Data and Digitalization

Archive
Subscribe

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week