CMA launches further probe into Babcock aviation sale
Aviation services were sold in September
Competition watchdogs have launched a further investigation into the £10m sale of Babcock’s Aberdeen-based oil and gas aviation business to CHC Group.
The acquisition of the business, which operates in the UK, Australia and Denmark, prompted an initial inquiry by the Competition and Markets Authority.
It set a 25 November deadline for undertakings that might be accepted by the CMA, but CHC informed the CMA that it would not be offering any such undertakings.
The CMA has therefore decided to refer the merger for a phase 2 investigation.
Proceeds from the sale, announced in March, are scheduled to reduce net debt.
The business employs more than 500 and operates about 30 aircraft across its three locations.
For the year ending 31 March 2021, it had revenue of £154m, a loss before tax of £2m and underlying operating profit of £2m.