UK competition regulator to study SMFL LCI Helicopters’ Macquarie acquisition
The CMA has promised to reach a Phase 1 decision by December 3rd, 2025. (Photocredit: Shutterstock).
The UK competition watchdog – the Competition and Markets Authority (CMA) – is to probe the acquisition by SMFL LCI Helicopters Limited (SMFLH) of Macquarie Rotorcraft Limited (MRL), it revealed today.
The regulator said in a statement: “The Competition and Markets Authority is considering whether it is, or may be, the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The CMA has invited industry comments on the transaction from interested parties to be received by Tuesday, October 21st. The authority has pledged to reach a preliminary Phase 1 decision by Wednesday, December 3rd.
A spokesman for Macquarie Rotorcraft told Helicopter Investor today the business is actively cooperating with the CMA but is unable to comment on an open investigation. SMFLH has also been approached for comment. Read more about the CMA decision here.
In March this year the joint venture between Sumitomo Mitsui Finance and Leasing Corporation and LCI revealed it had agreed to buy Macquarie Rotorcraft, the helicopter leasing division of Australian bank Macquarie. The terms of the transaction were not disclosed.
Macquarie Rotorcraft has a portfolio of about 120 helicopters. The fleet operates in offshore transport, emergency medical services (EMS), search and rescue (SAR) and utility markets.
SMFL first invested in helicopters in 2020 as part of a joint venture with LCI – an aerospace subsidiary of Libra Group. In 2023, it bought 35% of the operating lessor.
Macquarie Rotorcraft was launched in 2013. It acquired most of the assets of Waypoint Leasing in 2018 for $650m.
SMFL is a joint business between Sumitomo Mitsui Financial Group and Sumitomo Corporation.
Commenting in March, the joint venture partners said in a statement: “Through this acquisition, we aim to further expand our business and customer bases and establish a strong position in the helicopter leasing industry, where demand is expected to grow.”
Bloomberg was the first to report on the possibility of a sale in December 2024. At the time, the news agency said the Australian bank had placed a $1.2bn price tag on Macquarie Rotorcraft.
Meanwhile, after CHC Group purchased Babcock International’s offshore oil and gas aviation business for £10m in September 2021, the competition regulator intervened on competition fears to force the divestment of the UK portion of the business.
Initially the deal included Babcock’s offshore helicopter transport operations in the UK, Denmark, and Australia. But a CMA investigation found that the merger would significantly reduce competition for helicopter services in the UK sector. The watchdog subsequently ordered CHC to sell the UK portion of the business. In 2023, CHC sold the UK-based helicopter business (known as Offshore Helicopter Services UK) to the South African firm Ultimate Aviation Group.
But CHC was allowed to keep Babcock’s former offshore aviation operations in Australia and Denmark.
