Prosafe appeals Norway’s Floatel merger objection
- Exploration & Production
Offshore accommodation giant Prosafe has appealed the Norwegian Competition Authority’s decision to reject the proposed Prosafe-Floatel merger.
The Norwegian Competition Authority last month objected the proposed merger of the two largest providers of semi-submersible accommodation rigs. The NCA said the merger would reduce competition and lead to increased cost for customers.
The proposed merger, if realized, would create the world’s largest offshore accommodation company, with Prosafe currently owning and operating a total of nine offshore accommodation units, and has options for delivery of two newbuilds, while Floatel’s fleet counts five units.
In a statement on Monday Prosafe said: “Prosafe has filed its appeal to this decision and will continue its efforts to get clearance in Norway.”
It is not only the Norwegian authorities that have expressed concerns that the merger would reduce competition. The UK Competition and Markets Authority (CMA) said in September it was concerned that the deal could reduce competition in the supply of ASVs for oil and gas projects on the UK continental shelf, and that Prosafe and Floatel’s customers would face higher prices or lower quality offers when tendering for ASVs due to insufficient competition.
Prosafe on Monday said that in the UK, the process with the Competition and Markets Authority is in Phase 2 and more specific information is anticipated to be available in the course of the first quarter of 2020.
Offshore Energy Today Staff
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