UK watchdog warns SLB-ChampionX could harm competition

The British Competition Regulator said that the proposed $8 billion acquisition of smaller competitor ChampionX by oilfield services firm SLB could lead to a significant lessening in competition in the United Kingdom.

SLB and ChampionX will not be allowed to proceed with an in-depth investigation unless they offer corrective measures, said the Competition and Markets Authority. The companies have until April 3, 2019 to provide these remedies.

SLB stated that it would work with CMA to resolve any concerns, and they were confident that the transaction would go through.

It added, however, that it anticipated a further delay to the closing of the deal. This would happen now in the second quarter or early third quarter in 2025.

It was expected to close by the end or early second quarter of the first.

In Norway, the deal is still being reviewed by the antitrust authorities. SLB has the legal right to complete the transaction in the United States.

ChampionX has not responded to our request for comment. Reporting by Aby José Koilparambil from Bengaluru. (Editing by Shounak dasgupta, Mark Potter and Shounak Dasgupta)

(source: Reuters)