Watchdog puts brake on Cosalt marime sale plan

Cosalt, the marine safety group chaired by David Ross, today said the deal to sell its marine business to Survitec would be delayed due to an intervention by the Office of Fair Trading.

The watchdog wants "further information" on the plan, which means it is unlikely to be completed by July 22, as previously expected.

In early May, Cosalt unveiled the disposal of its marine unit, comprising its UK and continental marine operations, to Survitec for £31 million. Survitec had first made a bid in November.

Cosalt, which provides safety equipment and services for the offshore oil and gas and marine industries, plans to use about £27 million of the sale proceeds to reduce its bank borrowings, which are around £30 million.

Earlier this year, Cosalt said it faced impairment and exceptional charges totalling more than £17 million following problems in its offshore division.