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CHC LLC purchases Babcock

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CHC LLC purchases Babcock

Old 10th Apr 2022, 21:27
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PHI are setting up a European operation. Weststar and HeliUnion have always been interested in the NS.

LZ
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Old 10th Apr 2022, 22:23
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Originally Posted by Hot_LZ View Post
PHI are setting up a European operation. Weststar and HeliUnion have always been interested in the NS.

LZ
Someone should tell them not to bother; it's like Mos Eisely...

"You will never find a more wretched hive of scum and villainy."

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Old 10th Apr 2022, 22:33
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Originally Posted by Mitchaa View Post
Expected response to be fair.

In summary, sell off the UK element and keep the Danish and Australian elements.

https://www.energyvoice.com/oilandga...tition-hurdle/
I think you'll find that that is only one possibility. In their riposte CHC allude to stripping BondCockSuk of the assets they want and leaving a 'going concern' for sale complete with the AOC, post holders and just one contract (most likely TOTAL based on the animosity TOTAL appears to have for CHC). CHC further labours the point that a new entry to the market can survive on just one contract and even gives previous examples of such.
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Old 11th Apr 2022, 11:53
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Weststar is for sale. Heli Union is downsizing it's offshore business. Unlikely either would want to get into new aircraft types in a new jurisdiction in a hyper competitive market.
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Old 11th Apr 2022, 17:54
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Originally Posted by Mitchaa View Post
Thinking outside the box a little,

CHC paid £10m for Babcock which seems awfully cheap, what would stop them winding up OHS, stripping itís 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, itís 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 doesnít 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, doesnít 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
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Old 12th Apr 2022, 12:19
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Babcock post £383m loss in 2021, being reported in the MSM, ouch
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Old 27th May 2022, 01:32
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The new Rumour is that PHI are set to buy Babcock now from CHCÖ
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Old 27th May 2022, 10:20
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Originally Posted by OGP2022 View Post
The new Rumour is that PHI are set to buy Babcock now from CHCÖ
🤣...that rumour is about as 'new' as the one that professes that Boris Johnson might be a bit of a muppet. Nothing new at all. It's been circulating in the crewrooms since the CMA issued its interim report.

...and it's OHS-Uk [ltd]. Babcock have washed their particularly dirty hands of the whole thing.
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Old 1st Jun 2022, 14:14
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https://www.gov.uk/government/news/c...-services-deal
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Old 1st Jun 2022, 14:30
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Oh dear.........
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Old 1st Jun 2022, 16:16
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Wow, one might assume this will be an extremely expensive endeavour for both entities!
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Old 1st Jun 2022, 17:23
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Originally Posted by nowherespecial View Post
Oh dear.........
Ya dang got that right!
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Old 1st Jun 2022, 17:35
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Originally Posted by Mitchaa View Post
Hmm, if the rumours of PHI coming into the market are true (or any big player for that matter) then surely they would buy the Aberdeen business for some/most/ all or even more than the money CHC paid Babcock?

£10m sounded very cheap to me at the time (Guessing big Babcock absorbed the losses and debts and wrote them off) so it may actually turn out to be a very good business move depending on how you look at it?
CHC acquired Denmark and Australia, those contracts and their people and will then recoup £££ from the sale of the Aberdeen business unit. Looks like the deal of the century to me where I actually canít get my head around the maths but perhaps Iím overlooking something blindingly obvious,
CHC have to sell, but another company doesn't have to buy it... this is where it gets very interesting.

If they believe the core value in the purchase is outside the UK, what's stopping them winding up the UK part?

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Old 1st Jun 2022, 17:41
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Originally Posted by helicrazi View Post
CHC have to sell, but another company doesn't have to buy it... this is where it gets very interesting.

If they believe the core value in the purchase is outside the UK, what's stopping them winding up the UK part?
There would be TUPE issues for a start.
As the contracts that Babcock have are ongoing TUPE would apply.
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Old 1st Jun 2022, 17:51
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Originally Posted by Mitchaa View Post
Hmm, if the rumours of PHI coming into the market are true (or any big player for that matter)...
Surely PHI would have been one of the [quote]'...businesses which were suggested to us as potential entrants...'[unquote] as well as other 'big players'?
Would PHI and other 'big players' not have been consulted by the CMA and therefore have already ruled themselves out? Chatter from OHS employees indicates that that's what OHS management think.

The Summary of the Final Report appears to be as contradictory as the interim report: The CMA states that they won't allow the merger due to concerns about Significant Loss of Competition and that the OHS part of the Fisher business must be divested...but twenty five paragraphs (and a lot of guff) later they indicate that no one is interested in buying OHS.

So, my learned friends, what happens when no buyer is found and CHC gets fed up with pumping cash into something they can't control or, presumably, make money from? Wouldn't OHS fold and all the contracts go back to tender anyway?

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Old 1st Jun 2022, 18:07
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PPI Zulu - exactly what I put a few posts ago, just because CHC have to sell it, doesn't mean there's a mad hatter waiting to blow his/her/gender neutral fortune. And if no buyer, then what?
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Old 1st Jun 2022, 18:32
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Originally Posted by helicrazi View Post
PPI Zulu - exactly what I put a few posts ago, just because CHC have to sell it, doesn't mean there's a mad hatter waiting to blow his/her/gender neutral fortune. And if no buyer, then what?
....🤜🤛....
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Old 1st Jun 2022, 18:34
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[QUOTE=Mitchaa;11239096]
Originally Posted by PPI Zulu View Post


Good valid points and a plausible scenario too.
..........
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Old 2nd Jun 2022, 07:33
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Originally Posted by ericferret View Post
There would be TUPE issues for a start.
As the contracts that Babcock have are ongoing TUPE would apply.
Don't hold your breath or bank on this statement - definitely not always been the case ....


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Old 2nd Jun 2022, 08:48
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Originally Posted by dustycraphopper View Post
Don't hold your breath or bank on this statement - definitely not always been the case ....
Quite. There was no TUPE when Babcock bought Bond Offshore Helicopters (as part of World Helicopter / Avincis)...quite the contrary in fact.
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