Both companies are providers of contract platform drilling, engineering and well intervention services to the offshore oil and gas industry. The OFT was concerned about the impact of the transaction on the supply of skilled manpower deployed in the provision of contract drilling services on offshore platforms located in the North Sea section of the UK Continental Shelf. Despite the acquisition leading to high market shares and reducing the number of contract bidders from four to three, the OFT concluded that the merged entity would continue to be constrained by the on-going buyer power of customers, in particular the ability of the oil and gas companies to control the procurement process (e.g. through "multi-sourcing" awards) and sponsor entry in the event of the post-merger market failing to deliver on price and/or service. Alan Overd and Vicki Mertzanidou of CRA's London office advised Seawell throughout the OFT proceedings.
See OFT Decision