Offshore helicopter transportation company CHC on September 1 said it had completed the acquisition of Babcock International’s offshore oil and gas aviation business.
Now, the UK competition watchdog Competition and Markets Authority has launched an inquiry to see whether the deal has resulted, or may be expected to result, in a substantial lessening of competition.
CMA has now invited comments on the transaction from any interested party to assist with the assessment, and it expects to announce its decision by November 18, 2021.
Announcing the close of the acquisition, CHC said earlier this month that the deal would increase its offshore crew transportation capacity and expand its fleet by around 30 aircraft across the UK, Denmark, and Australia.
While the two companies announced the completion of the deal, CHC at the time said it still needed some regulatory approvals.
"Babcock International’s operations in the UK, Australia, and Denmark will be held separately and operate independently from CHC, while CHC seeks approval from the relevant competition authorities in the UK and Australia," CHC said at the time.
Babcock said it had sold the Oil and Gas aviation business to CHC for a cash consideration of £10 million.
The business, now acquired by CHC, is headquartered in Aberdeen, UK, and employs over 500 people, and operates around 30 aircraft across Australia, UK, and Denmark.
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