CMA provisionally finds offshore helicopter merger raises concerns

The merger of Babcock's helicopter unit with CHC was first announced a year ago

A watchdog has provisionally found that the merger of two offshore helicopter businesses raises competition concerns in the UK.

The announcement follows an in-depth investigation by the Competition and Markets Authority (CMA) into CHC Group's purchase of Babcock's Aberdeen-based aviation division last year.

Both provide offshore transportation for workers in the North Sea.

The watchdog's final decision is due by 15 May.

Interested parties have until 7 April to respond to its provisional findings.

In a statement, the CMA said its investigation had analysed data on bidding for previous contracts and hundreds of internal documents that showed how the merging businesses assessed competition in the sector.

It added that it had also "engaged with customers, competitors and other industry players" to inform its provisional findings.

Kip Meek, chairman of the CMA inquiry group, said: "We're concerned that this merger will reduce competition in a market which currently only has four competitors and that is vital to the smooth running of the North Sea oil and gas industry.

"Our findings are provisional at this stage, and we welcome further responses from CHC and Babcock, as well as from other interested parties."

The companies reported in September that they had completed the £10m merger, which was first announced in March last year.

But the CMA later started formally looking into the deal.