Acergy S.A. and Subsea 7 propose to merge their global operations.
Outcome of assessment
Not opposed
Total review days *
25
Commenced public review
30th September 2010
Date completed
4th November 2010
Market definition
The ACCC considered the competitive effects of the proposed acquisition in the context of the following markets:
- The market for the supply of offshore, engineering, construction and maintenance (OECM) services in the Asia Pacific region.
Competition analysis
OECM services to the oil and gas industry comprise of project management, procurement, fabrication, installation, construction, commissioning and maintenance of fixed and subsea production facilities, offshore pipelines and associated infrastructure.
In reaching its conclusion not to oppose Acergy's proposed acquisition of Subsea 7 the ACCC considered, amongst other factors:
- that the combined entity will have a relatively small market share of OECM services and that remaining competitors would continue to impose a competitive constraint on Acergy's ability to increase its prices or offer lower quality OECM services;
- an absence of substantial barriers to entry or expansion;
- that customers of OECM services possess significant countervailing power and can easily switch between suppliers
Accordingly, on 04 November 2010, the ACCC decided not to oppose the proposed acquisition.
Review timeline
Date
Event
30th September 2010
ACCC commenced review under the Merger Review Process Guidelines.
18th October 2010
Closing date for submissions from interested parties.
4th November 2010
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
