Technip-CGG favorable state the principle of marriage
Governments call for dialogue between Technip and CGG to constitute a national champion.
The judge, however, state the supply of Technip unsatisfactory at this stage.
The state considers a benevolent eye more than the principle of a rapprochement between the oil services Technip and CGG. While the first specialist production equipment, announced last week it had approached the second, present in the seismic basement, "the idea of a consolidation between two French players in oil services, with complementary activities is now well regarded by the authorities, "says the" echoes "a source close to the state. "The government tends to favor the creation of national champions: create a large French oil services group is a rather appealing idea," says a close case.
A caring attitude however is not carte blanche for the leaders of Technip, whose approach was strongly rejected by the Board of Directors of CGG ("Les Echos" from November 21). The state is in fact in the position of arbiter, since it is the largest shareholder of both groups through public structures.
Bpifrance and IFP Energies nouvelles together hold 14.3% of Technip's voting rights and 19% of CGG voting rights. But at this stage, the preliminary offer Technip is not satisfactory - including the state. "We want a real dialogue is established between the two companies so that they are all acceptable scheme" continues to be within government.
The CEO of Technip Pilenko, knows seismic for leading Veritas prior to its acquisition by CGG in 2007. He was maturing the idea of marriage for several months, and had discussed with his board. He informed the representatives of the State before approaching CGG, "not to seek support, but above all to avoid any surprises," said one of his relatives.
An unconvincing project
The offer made on 10 November, when the sector is experiencing a cyclical trough, however, was not well received. Particularly because the transaction has few industrial synergies. Technip said they needed CGG technology to better understand the reservoirs of the field on which he works - without really convincing. "The argument does not seem enough to give meaning to the operation," says the source close to the state. "And if it is just to buy cheap assets to sell some, this is not acceptable." The project to dispose of the data acquisition business, which employs 500 people in France and has 13 ships, is poorly perceived.
While the authorities call the two companies to enter into discussions, the situation appears today at a standstill . Technip confirms wanted "a constructive and confidential dialogue" while, CGG hand, it says that "nothing has changed, we are waiting."