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 Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

Ecoships Claims 15% Ship Efficiency Gain

Ecoships introduced a customized version of the Six Sigma DMAIC approach to process and performance evaluation in order to optimize the energy-efficiency of the vessels under its management.

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1072 sec (9 req/sec)