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Canada: Regulator challenges PE firm’s Aucerna buy

By  |  June 18, 2019

The Competition Bureau is challenging Thoma Bravo’s recent acquisition of Aucerna, a company that offers reserves valuation and reporting software to Canadian oil and gas producers.

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    Recently the Bureau filed an application with the Competition Tribunal for an order requiring Thoma Bravo to sell one of its reserve software products.

    According to the regulator, Thoma Bravo now owns the two largest oil and gas reserves software businesses in Canada. That rivalry incented these businesses to regularly enhance MOSAIC and Val Nav.

    Following its investigation, the Bureau found that the transaction is a merger to monopoly in the supply of reserves software in Canada to medium and large producers. The Bureau concluded that the transaction is likely to substantially lessen competition resulting in higher prices and lower quality of service for customers in Canada. Given that, prior to the acquisition, MOSAIC and Val Navwere each other’s only effective competitors, the loss in competition between them is also likely to significantly reduce innovation and product quality of reserves software in Canada.

    Full Content: Oil & Gas, Canada

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