Originally Posted by
Mitchaa
Thinking outside the box a little,
CHC paid £10m for Babcock which seems awfully cheap, what would stop them winding up OHS, stripping it’s assets and re-bidding for the contracts in the 3 operator scenario?
According to previous posts, Babcock willingly bid on loss making contracts just to get the work. Are CHC now lumbered with these loss making contracts? If so, can they do anything about it?
Presumably, CHC and equally Bristows and NHV would prefer a 3 operator model, the oil companies clearly a 4 operator model. With CHC selling OHS U.K. on to a new owner, it’s a little cut your nose off to spite your face as they still need to battle the new owner for work over the next decade or two. It doesn’t get rid of the problem that they were trying to solve. (Consolidate the market)
I am guessing the CMA could impose a fine of some sorts if this were to happen but wondering if the fine would be worth taking on the chin especially after asset stripping OHS? I wonder if the legal bods at CHC have considered such actions as going down the path of selling on, doesn’t solve the problem going forward.
Just another thought anyway.
Difficult to say without accessing the 'get out' clause. Either that or just 'default' on the contract..........accidently on purpose