Oaktree’s plan to consolidate the offshore accommodation through the merger of Prosafe and Floatel has hit a potential stumbling block.
UK competition authorities have found that the proposed deal “raises competition concerns” in the supply of such vessels.
The UK’s Competition and Markets Authority (CMA) has been investigating the proposed deal since it was announced in early June 2019.
“After completing its initial Phase 1 investigation, the CMA is concerned that the deal could reduce competition in the supply of ASVs for oil and gas projects on the UK continental shelf,” it said in a statement.
The CMA’s investigation has found that Prosafe and Floatel are the two largest suppliers in the market, owning the vast majority of semi–submersible offshore accommodation in North West Europe.