Wavefield Inseis has 8 including 5 top of range

CGGVeritas defies financial crisis and the fall of oil prices. In stock market turmoil, the global leader of seismic equipment and services announced Monday the launch of a public offer of Exchange (CFS) on its competitor Wavefield Inseis. It values the Norwegian group to 2.1 billion crowns (240 million euros), or 31 more than his last course of scholarship in Oslo. The operation, recommended unanimously by the Council of Wavefield Inseis, must allow CGGVeritas strengthen its resources, without creating to overcapacity. "We earn 10 years of research and three years of boat building", welcomes Robert Brunck, CEO of CGGVeritas. Through the acquisition, which must still be endorsed by the competition authorities, the group born year last of the merger between the French geophysics and American Veritas must bear its market share of 30 to more than 35, according to his boss.

Seismic is an ultrasound of the Earth's crust by sending waves and retrieving them in turn. On the sea, it requires very sophisticated vessels. CGGVeritas has already 21, including two third-party premium, which produce images in three dimensions. Wavefield Inseis has 8, including 5 top of range. Together, they will have the largest fleet in the industry. In addition, Norwegian uses fiber optics, rare and coveted technology. In this, it complements Thangaraj products, a subsidiary of CGGVeritas geophysical equipment portfolio, aboard ships in the sector.

Strong consolidation of the sector

Demand for oil tankers, struggling to renew their reserves, the seismic market has doubled since 2005, at 12 billion (EUR 9.4 billion). He knows a strong consolidation. The first three players of the sector CGGVeritas and WesternGeco (subsidiary of Schlumberger) GSP hold more than 70 of the seismic market Navy. According to analysts of Berenberg, this concentration needed "more discipline" that in the last cycle. In other words, despite the fall in oil rates on seismic studies should not too down. Robert Brunck, tankers have in any event need to replace their reserves and, "even with a barrel at $ 60, nobody can say that it is misery".

Wavefield Inseis had initially planned a marriage with one of his compatriots, TGS. He valued Wavefield Inseis 6.8 billion Norwegian kroner. Three times more than the price that pay CGGVeritas. But the case fell into the water because of the frond of the shareholders of Wavefield Inseis. The two companies have also put an end Monday to all proceedings of litigation, paving the way for the acquisition by CGGVeritas.

Wavefield Inseis conducted in the third quarter a turnover amounting to $ 110 million, or about tenth of CGGVeritas, and an operating profit of 37 million, approximately the seventh of its acquirer. To finance the operation, CGGVeritas will emit 19 million new shares. In the end, the shareholders of Wavefield Inseis will hold 12 of the new set.

Unless a counteroffer. Robert Brunck is cautious: "I do not think there is a, but you never know." The financial crisis has, however, of how calm the appetites, even in an industry in turmoil. Yesterday, in Oslo, the Norwegian company action fell 4.19 at the end to 16 crowns, is almost implicit course of the offer of CGGVeritas. (15,90 crowns)