Norwegian Competition Authority has announced the rejection of the proposed merger between offshore accommodation platform operators Floatel and Prosafe.
In September, competition authorities from both Norway and UK opposed the proposed merger after investigations, giving similar concerns that the merger would could reduce competition in the supply of offshore accommodation support vessels for oil and gas projects, while customers of the two companies may face higher prices or lower quality offers due to insufficient competition.
Floatel and Prosafe will study the decision in detail and expects to decide on whether to appeal shortly.
Prosafe currently owns a fleet of nine semi-submersible accommodation platforms with another two newbuildings under construction while Floatel owns five similar units.
