Prosafe not giving up on Floatel merger

Offshore accommodation specialist Prosafe will not give up on its proposed merger with rival Floatel following the recent rejection by the Norwegian competition authority.

Illustration only: A Prosafe accommodation rig / ©Prosafe
Illustration only: A Prosafe accommodation rig / ©Prosafe

Prosafe and Floatel announced their proposed “merger of equals” that would create the world’s largest owner of semi-submersible accommodation rigs, with Prosafe currently owning and operating a total of nine offshore accommodation units, and has options for delivery of two newbuilds, while Floatel’s fleet counts five units.

However, the proposal raised competition concerns both in the UK and Norway, where the competition authorities expressed concern that the merger would lead to increased prices to customers and would harm competition.

The UK Competition and Markets Authority said in September it would further investigate the proposed merger amid competition concerns, however, the Norwegian regulator last week moved to block the merger.

Prosafe last week said it would study the decision and decide on whether to appeal. The company on Monday, in its 3Q presentation, said it intended to appeal the decision and said it would continue its efforts to get clearance in both Norway and UK.

“The company continues to rigorously pursue competition clearance in order to be in a position to merge with Floatel International and create a more robust and sustainable company. A potential merger with Floatel is further subject to approval by lenders and an EGM in Prosafe,” Prosafe said.

 


Offshore Energy Today Staff

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