Babcock International Group (BAB)

Sector:

Defense and Aeronautics

Index:

FTSE 250

312.40p
   
  • Change Today:
      0.80p
  • 52 Week High: 380.20p
  • 52 Week Low: 255.90p
  • Currency: UK Pounds
  • Shares Issued: 505.60m
  • Volume: 343,146
  • Market Cap: £1,579.48m
  • RiskGrade: 290

CMA gives CHC 5 working days to address concerns over Babcock acquisition

By Michele Maatouk

Date: Thursday 18 Nov 2021

LONDON (ShareCast) - (Sharecast News) - The UK's Competition and Markets Authority has given the buyer of Babcock's international offshore oil and gas aviation business five days to address competition concerns.
Helicopter services provider CHC Group bought the Babcock business for £10m in September. But the competition watchdog said on Thursday that the deal could result in "a substantial lessening of competition".

As a result, the merger will be referred for a phase 2 investigation "unless the parties offer acceptable undertakings to address these competition concerns". The deadline for CHC to submit proposals is 25 November.

The CMA pointed out that both businesses provide offshore transport in the oil and gas sector, taking workers to and from rigs in the North Sea. It noted that CHC and the Babcock unit are two of only four suppliers in this field and compete against each other regularly to win contracts.

"The CMA is concerned that the loss of one of these four suppliers could lead to higher prices and lower quality services for customers," it said.

CMA senior director Colin Raftery said: "Our investigation showed that CHC's purchase of the Babcock Business would take out an important competitor.

"While oil and gas exploration in the North Sea is expected to decline over time , these are safety-critical services on which customers continue to spend hundreds of millions of pounds a year. It is therefore important that this deal is subject to more detailed scrutiny if our concerns aren't addressed."



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BAB Market Data

Currency UK Pounds
Share Price 312.40p
Change Today 0.80p
% Change 0.26 %
52 Week High 380.20p
52 Week Low 255.90p
Volume 343,146
Shares Issued 505.60m
Market Cap £1,579.48m
RiskGrade 290

BAB Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
25.82% below the market average25.82% below the market average25.82% below the market average25.82% below the market average25.82% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Price Trend
25.90% above the market average25.90% above the market average25.90% above the market average25.90% above the market average25.90% above the market average
28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average
Income
17.7% below the market average17.7% below the market average17.7% below the market average17.7% below the market average17.7% below the market average
40.00% above the sector average40.00% above the sector average40.00% above the sector average40.00% above the sector average40.00% above the sector average
Growth
67.53% below the market average67.53% below the market average67.53% below the market average67.53% below the market average67.53% below the market average
85.71% below the sector average85.71% below the sector average85.71% below the sector average85.71% below the sector average85.71% below the sector average

What The Brokers Say

Strong Buy 5
Buy 0
Neutral 5
Sell 0
Strong Sell 0
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BAB Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Dec-19 04-Jul-19
Paid 17-Jan-20 09-Aug-19
Amount 7.20p 22.90p

Trades for 20-May-2022

Time Volume / Share Price
16:45 814 @ 313.00p
16:45 814 @ 313.00p
16:44 2,004 @ 313.31p
16:35 137,909 @ 312.40p
16:29 268 @ 313.00p

BAB Key Personnel

Chair Ruth Cairnie
CEO David Lockwood
CFO David Mellors

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