The UK’s monopoly watchdog has decided to carry out an in-depth investigation into the planned merger between two offshore accommodation providers.
Earlier this month, the Competition and Markets Authority (CMA) said it was concerned that combining Prosafe with Floatel International could drive up prices to unsustainably high levels due to a lack of alternatives in the market.
The CMA said it had carried out a preliminary probe, and would progress to an in-depth investigation if the two parties were unable to assuage those concerns.
Prosafe said this morning that the CMA had decided to refer the merger to a “phase 2” evaluation.
The company will ask for a three-week extension “in order to evaluate whether to enter phase 2”.
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.