OFT Considering Divestment Offer By Acergy
December 21 2010 - 10:37AM
Dow Jones News
The Office of Fair Trading or OFT, said Tuesday it is
considering an offer of divestment by Acergy S.A. (ACY.OS) to
remedy competition concerns raised by its proposed acquisition of
SubSea 7 Inc (SUB.OS).
MAIN FACTS:
-Parties overlap in the provision of certain offshore oil field
services.
-OFT concluded that the acquisition would not give rise to
concerns in relation to the supply of services for diving or
construction and remote intervention projects because the merged
firm would continue to face significant competition from a number
of other service providers in these specific areas.
-OFT also assessed the extent of overlap in the supply of
services for pipelay projects in the North Sea.
-It found that the merger would raise competition concerns in
relation to the provision of small diameter rigid pipelay services
alone and projects which require the provision of both small
diameter rigid pipelay and diving services.
-In order to address these competition concerns, the parties
have offered to divest one pipelay vessel and, to the extent
necessary, one diving vessel to a suitable purchaser.
-By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448,
tapan.panchal@dowjones.com