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Monopoly watchdog not sold on Prosafe, Floatel merger

The UK’s monopoly watchdog is considering ramping up its investigation into the planned merger between two offshore accommodation rig owners.

The Competition and Markets Authority (CMA) said Prosafe and Floatel International owned the vast majority of semi-submersible accommodation vessels in north-west Europe and scooped up most contracts.

The organisation said options for customers were already limited and that a merger of the companies could drive up prices to unsustainably high levels.

CMA voiced these fears after completing a preliminary probe into the deal.

If Prosafe and Floatel can’t assuage those concerns, a group of independent CMA panel members will carry out an “in-depth” review.

Announcing the deal in June, Prosafe said the merger with Floatel would create the “world’s largest” offshore accommodation company.

Both companies have offices in Aberdeen and Norway.

They are currently considering an “acceptable remedy” to concerns raised by the UK CMA.

The deal is also being investigated in Norway, where the process has reached the final phase, with a conclusion expected before the end of September

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Craigmill, Pitcaple, Inverurie, Aberdeenshire, United Kingdom, AB51 5HP
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