CHC has announced it will sell the former Babcock North Sea helicopter business to South African firm, Ultimate Aviation Group.
The deal, expected to complete in the next fee weeks, comes after the UK competition watchdog ordered the sale of the Babcock aviation business – which CHC Helicopter acquired from the aerospace giant in September 2021 – arguing it would “significantly reduce rivalry” in the North Sea.
CHC said the sale and purchase agreement was signed in December, but needs to be cleared by the Competition and Markets Authority (CMA).
Chief executive David Balevic said: “While we remain disappointed with the CMA’s decision and believe it was based on several fundamental misconceptions, we are glad to be close to completing this process through the sale of OHS (Offshore Helicopter Services) UK to Ultimate Aviation.
“CHC’s talented team will continue to deliver outstanding levels of service and safety, quality and innovation, through our existing UK business.”
According to its website, Ultimate Aviation Group has operations in South Africa and Madrid.
The firm offers cargo transport, helicopter services for the oil and gas industry and commercial flights.
The Texas-headquartered firm long argued against the CMA’s ruling, fighting its conclusion over a lack of competition in the struggling North Sea helicopter market.
The divestment to Ultimate Aviation Group covers the UK arm of Babcock – now known as Offshore Aviation UK – which as of last year employed around 500 people.
In a recent conversation with Energy Voice, recently appointed UK operations director for CHC, Harry Bos, said: “Of course, the decision of the CMA was disappointing, but it is the decision we are living with.
“We are moving on with the bits of Babcock that we have in Denmark and Australia and with our current team and our current portfolio.”
Babcock first struck the deal to sell its helicopter business to CHC for £10 million in early 2021.
The CMA ordered CHC to unwind the deal in June.
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