CGG-Technip merger favoured by French government
The French government is understood to be in favour of a merger between listed French oil exploration specialist CGG and French listed infrastructure and platforms specialist Technip, French daily Les Echos reported.
The report cited a source familiar with the matter as saying that the French government is supporting the creation of a France-bases champion operating in the oil sector. The report noted that the French government, via its Bpifrance and IFP agencies, is the main shareholder in both companies with 19% of the voting rights in CGG and 14.3% of the voting rights in Technip.
However, government insiders described as playing the role of “referee” are claiming that a real dialog has to take place between the two companies to find an “acceptable” outcome. Another source close to Thierry Pilenko, head of Technip, confirmed that members of the government were told of Technip’s interest in CGG before the approach was officially made.
The report went on to say that the government is still having doubts about the EUR 1.47bn offer from Technip, which could include CGG’s acquisitions business, which operates 13 vessels and 500 employees.
According to the report, discussion between the parties are now on hold as a source at CGG confirmed that the company was in a waiting stance at the moment and that nothing has taken place since the approach was made.
Source Les Echos