CCP approves HP Global Holdings’ purchase of KCA Deutag

KARACHI: The Competition Commission of Pakistan (CCP) has approved the purchase of KCA Deutag International Limited by HP Global Holdings Limited (H&P). The deal involves H&P acquiring all shares of KCA Deutag from Sculptor Special Master Fund Limited, including an 18.5 per cent share in KCA Deutag GmbH, a company registered in Pakistan.

KCA Deutag is a global oil field services company based in the US, operating 138 onshore rigs and providing drilling and engineering services. HP Global Holdings, a subsidiary of Helmerich & Payne, Inc, specialises in drilling services for the oil and gas industry worldwide. This transaction will transfer ownership of KCA Deutag to HP Global Holdings.

The CCP reviewed the deal and found that it would not give HP Global Holdings a dominant position in Pakistan’s oil field services market. Since HP Global Holdings currently does not operate in Pakistan, the acquisition will not change the market dynamics in the country.

The CCP approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010 and confirmed it would not harm competition in the market.