IP/00/1425
Brussels, le 07 decembre 2000
Commission opens in-depth inquiry into
Maritime’s take-over of Kvaerner
Aker
The European Commission has opened an in-depth investigation into Aker
Maritime’s acquisition of shares in Kvaerner. Aker Maritime and Kvaerner
both have significant activities in the oil and gas sector as well as in
shipbuilding. The Commission’s initial investigation has shown that the
transaction may create or strengthen a dominant position on the markets for
contracts for construction of oil & gas platforms as well as the modification
and maintenance of such platforms.
Aker Maritime (AMA) is a Norwegian firm listed in the Oslo Stock Exchange and 63percent owned and controlled by Aker RGI Holding ASA, which in turn is wholly
controlled by Mr. Kjell Inge Røkke. AMA is a provider of products and services for
offshore exploration, development and production of oil and gas and is also active in
shipbuilding.
Kvaerner is an Anglo-Norwegian engineering and construction group, which is listed
on the Oslo and London stock exchanges. Its activities encompass engineering &
construction, services to the pulping industry, shipbuilding and products and services
for offshore exploration, development and production of oil and gas fields.
In July, AMA entered into several agreements effectively giving it 26.7 percent of the
voting rights in Kvaerner.
AMA notified the acquisition of the controlling stake in Kvaerner to the Commission
for regulatory clearance on October 23.
The notified transaction will have its main impact on the markets for Engineering,
Procurement, Construction and Installation (EPCI) contracts for oil & gas platforms.
In addition it raises competition concerns on the market for the modification and
maintenance of existing platforms (MMO). The combined AMA/Kvaerner would have
a high combined market share in both markets particularly on the Norwegian
Continental Shelf (NCS) of the North Sea.
In the course of its in-depth investigation, the Commission will further analyse the
scope of the geographical market in particular with regard to EPCI contracts in order
to better examine the competitive effects of the transaction. The Commission will
also study, among other issues, the strategic position of the oil companies as the
customers in the relevant markets.
AMA offered during the first-phase of the review to divest some businesses in order
to enhance competition in both markets. But these undertakings were considered to
be unsatisfactory, in particular because they did not address the competition
concerns in the EPCI market on the Norwegian Continental Shelf. It was also not
clear that the assets to be divested would have created a viable stand-alone
business for a competitor in the MMO market to be able to challenge seriously the
position of AMA/Kvaerner.
The opening of a in-depth inquiry does not prejudge the final conclusions of the
Commission which has now a maximum of four months to reach a decision.
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