EC Probes Further Into Aker Maritime's Transaction With Kvaerner

Thursday, December 07, 2000
The European Commission said on Thursday it had opened an in-depth four-month investigation into plans by Norway's Aker Maritime ASA to buy a 26.7 percent stake in Anglo-Norwegian engineering firm Kvaerner.

"The Commission's initial investigation has shown that the transaction may create or strengthen a dominant position on the markets for contracts for construction of oil and gas platforms (EPCI contracts) as well as the modification and maintenance of such platforms," the Commission said in a statement.

It said the combined company would have a high market share in both markets particularly on the Norwegian Continental Shelf of the North Sea.

"In the course of its in-depth investigation, the Commission will further analyze the scope of the geographical market in particular with regard to ECPI contracts in order to better examine the competitive effects of the transaction," the statement said.

The statement continued to reveal that the Commission would also study "the strategic position of the oil companies as the customers in the relevant markets."

The Commission said Aker Maritime had offered to divest some businesses to enhance competition on both markets, but that these undertakings were unsatisfactory.

It said they did not address the concerns in the platform construction market on the Norwegian Continental Shelf.

It was also not clear how the assets divested would have created a viable stand-alone business for a competitor in the maintenance market to be able to seriously challenge Aker Maritime/Kvaerner's position.

The decision now lies within the hands of the Commission, which has a maximum of four months to make its final ruling. It rarely blocks mergers and acquisitions, but often demands concessions, normally asset sales, to deal with competition problems before letting difficult deals go ahead.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Elandra Yachts Expands, Launches Finishing Department

Elandra Yachts has added another layer of craftsmanship to its boat-building operation with the launch of a new in-house paint department at the Gold Coast plant,

Baltic Dry Bulk Index Dips on Weak Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, continued to dip on Wednesday due to sluggish demand across vessel segments.

OMB - Subchapter M Cleared for Publication

The Office of Management and Budget (OMB) completed its review of the draft final rule entitled Inspection of Towing Vessels, also known as "Subchapter M." The

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0727 sec (14 req/sec)