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Norway: Regulator rejects Prosafe’s Rig Rival buy

 |  October 28, 2019

Norway has rejected Prosafe SE’s plan to create the world’s biggest offshore accommodation company by buying Floatel International, stating it would hurt competition.

Prosafe and Floatel decided to merge their operations earlier this year to build a company capable of sustaining a prolonged slump in the oil-service market. Both companies supply accommodation rigs for people working on offshore oil and gas platforms and have suffered from lower demand since oil companies reduced spending following a collapse in crude prices that started in 2014.

Floatel and Prosafe will study the decision in detail and expect to decide on whether to appeal shortly.

Prosafe currently owns a fleet of nine semi-submersible accommodation platforms with another two new buildings under construction while Floatel owns five similar units.

Full Content: Bloomberg

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