Oslo-listed offshore oil and gas services company Archer has completed the acquisition of Baker Hughes' Coil Tubing and Pumping business in the UK.
In February, the two companies signed official agreements for Archer to buy Baker Hughes' coil tubing and pumping (CT&P) business in the United Kingdom.
Dag Skindlo, CEO of Archer, said Tuesday: "This acquisition is part of our strategy to be one of the leading well services companies in the UK. Together with our well-established platform operations business, Archer is uniquely positioned to serve our customers with a broad range of production enhancements and P&A operations.
We are pleased to welcome this highly skilled and experienced team to Archer and look forward to adding value to existing and new customers."
Background
Baker Hughes had to divest the CT&P business as a part of a remedy package offered to the UK Competition and Markets Authority (“CMA”), in relation to its acquisition of Altus Intervention.
The CMA said in November 2022 that Baker Hughes' acquisition of Altus Intervention could reduce competition among UK oil and gas operators.
The regulator said it was concerned that the loss of rivalry between the merging companies could lead to higher prices, reduced choice, and lower quality services for businesses in the UK that purchase coiled tubing and pumping services.
Announcing the definitive agreement to buy Baker Hughes CT&P business in the UK in February, Archer Limited said the CT&P business included four complete CT&P packages with supporting equipment, specialized and optimized for the UK market.
As part of the transaction, Archer said it would take over a professional team of 51 employees in the UK, under a Transfer of Undertakings (Protection of Employment) (“TUPE”) process. Customer contracts related to the CT&P business will follow the transaction.