UK CMA Probes Deal To Form JV Between Baker Hughes And Akastor - Quick Facts

(RTTNews) - U.K.'s Competition and Markets Authority or CMA Friday said it is investigating the anticipated joint venture between Baker Hughes Holdings LLC (BKR) and Akastor ASA.

The agency said it is considering whether this transaction will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002. It is also checking whether the creation of such a situation may be expected to result in a substantial lessening of competition within any market or markets in the U.K. for goods or services.

The CMA announced the launch of its merger inquiry by notice to the Parties on June 18 and has a deadline of August 13 for its phase 1 decision.

It was in early March that Baker Hughes and Akastor announced their deal to create a joint venture company that will bring together Baker Hughes' Subsea Drilling Systems business with Akastor's wholly owned subsidiary, MHWirth AS.

The 50-50 JV is expected to deliver a global full-service offshore drilling equipment offering that will provide customers with a broad portfolio of products and services.

The closing of the transaction was expected to occur in the second half of 2021.