Newpark Resources Inc (NR)

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AP
FTC challenges Canadian co. bid for Newpark
Thursday October 23, 11:26 am ET
FTC challenges Canadian company's $85 million bid for offshore oil disposal company


WASHINGTON (AP) -- Federal regulators challenged an $85 million bid Thursday by Canada's CCS Corp. for a U.S. company that provides waste disposal services for the offshore oil and natural gas exploration industry.
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The Federal Trade Commission authorized a federal complaint to block the deal, saying the acquisition of Newpark Environmental Services would violate U.S. antitrust laws.

Newpark Environmental is owned by U.S. oilfield services company Newpark Resources Inc.

Calgary-based CCS, which provides waste and environmental services, agreed in April to buy Newpark Environmental Services, but the Federal Trade Commission asked for additional information as part of its antitrust review of the deal.

CCS last week threatened to shut down its entire Gulf Coast business in response, the FTC said.

"There is ample evidence that this transaction would allow CCS to eliminate its primary and closest competitor and that the merging parties' customers would face higher prices and diminished service as a result," David P. Wales, acting director of the FTC's Bureau of Competition, said in a statement, which could lead to higher prices and poor service.

The FTC said Newpark, CCS, and U.S. Liquids of Louisiana are the only firms that provide such services to the highly concentrated industry.

Shares of Woodlands, Texas-based Newpark gained 10 cents to $5.25 in morning trading.