A PYMNTS Company

Norway: Watchdog questions Floatel-Prosafe merger

By  |  September 17, 2019
merger 3 puzzle

The Norwegian Competition Authority (NCA) announced that it may intervene in the proposed merger of offshore accommodations platform operators Floatel and Prosafe, the two closest competitors in their segment in the region. The agency claims that other suppliers on the Norwegian continental shelf offer units that are not comparable and cannot meet the requirements to compete for all of the same contracts.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    “Prosafe and Floatel are the only providers of newer semi-submersible housing platforms on the Norwegian continental shelf. The Norwegian Competition Authority is of the opinion that the parties are close competitors and that they face competition from other players to a limited extent,” said Lars Sørgard, the agency’s director of competition.

    The firms have provided NCA with proposals on ways to mitigate any negative effects on competition, but the agency’s preliminary assessment finds that these measures will not sufficiently address the problem. 

    “We fear that customers who request accommodation services on the Norwegian continental shelf will have few or no competing suppliers in upcoming tender contests following the merger. Reduced competition will increase costs for companies that demand offshore accommodation services,” said deputy Marita Skjæveland.

    Full Content: Maritime Executive

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.