CHC has not addressed competition concerns on its takeover of rival Babcock and the competition watchdog has referred it to an in-depth investigation.
It comes after the helicopter operator was given five working days to assure the Competition and Markets Authority over the deal, which it said could lead to higher prices and lower quality services for customers in the North Sea helicopter market.
The CMA has now referred the merger to an in-depth investigation, which can include imposing remedies by order, if it is not able to agree them with the business, or prohibit the merger outright.
“Phase 2” investigations typically last around 24 weeks.
Babcock employs around 500 people in its helicopter business, with its primary base in Aberdeen, while CHC’s Aberdeen business covers around 300 people.
An enforcement order was issued by the CMA in June, which was followed by an initial phase one investigation.
In September, Babcock’s helicopter business was renamed as Offshore Helicopter Services UK Limited” in order to avoid any perceived association by customers with CHC while the two firms await merger clearance.
CHC and Babcock are two of four helicopter operators working out of Aberdeen, along with Bristow and NHV, and the CMA raised flags over the impact of losing one of these firms.
Earlier this month, it challenged CHC to submit proposals within five working days to address the concerns, otherwise the deal will be referred to a more in-depth phase two investigation.
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