18th Nov 2021 13:30
Babcock International Group PLC - London-headquartered aerospace and defence contractor - Antitrust watchdog says CHC Group LLC's acquisition of Babcock's oil & gas aviation unit "raises competition concerns in the UK". Both CHC's oil and gas offshore helicopter business and the unit sold by Babcock provide offshore transportation services, taking workers to and from rigs in the North Sea.
They are two of just four suppliers in this space and compete against each other, the UK Competition & Markets Authority says.
"The CMA is concerned that the loss of one of these four suppliers could lead to higher prices and lower quality services for customers," CMA adds. Watchdog gives CHC five working days to submit proposals for how to remedy concerns. If not, deal will be referred to phase 2 probe. Babcock sealed the GBP10 million sale of the asset back in September.
Current stock price: 316.00 pence
Year-to-date change: up 13%
By Eric Cunha; [email protected]
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