Affected market: Helicopter services
The OFT’s decision on reference under section 33(1) given
on 3 April 2008. Full text of decision published 21 April 2008.
FR Horizon GP Limited (First Reserve) is the controlling company of
a private equity fund advised by First Reserve Corporation: an
investment company focused on the energy industry.
CHC Helicopter Corporation (CHC) is a Canadian company whose shares
are listed on the Toronto and New York stock exchanges. It is one of the
world's largest providers of helicopter services to the global offshore
oil and gas industry.
First Reserve - through a Canadian subsidiary, 6922767 Canada, Inc - is
proposing to acquire all the shares in CHC.
As a result of this transaction First Reserve and CHC would cease to be
distinct. Given that CHC’s UK turnover exceeds £70 million, the
turnover test in section 23(1)(b) of the Enterprise Act 2002 (the Act)
is consequently satisfied. The OFT therefore believes that it is or may
be the case that arrangements are in progress or in contemplation which,
if carried into effect, will result in the creation of a relevant merger
The notifying parties submitted a Merger Notice to the OFT on 7 March
2008 and the deadline for a decision is 8 April 2008.
Having consulted customers and competitors as to the nature and scope of
the merging parties’ businesses, the OFT considers, on the basis of the
evidence before it, that there is no horizontal overlap between the
activities of the parties, that there are no vertical links between
them, and that there is also no risk of any conglomerate effects
Consequently, the OFT does not believe that it is or may be the case
that the merger may be expected to result in a substantial lessening of
competition within a market or markets in the United Kingdom.
This merger will therefore not be referred to the Competition Commission
under section 33(1) of the Act.