Following approval from the Norwegian Competition Authority, Norway-headquartered PGS and TGS have now received clearance for their merger from the UK Competition and Markets Authority (CMA), which is the final regulatory approval required.
TGS and PGS announced their agreement on principal terms to combine the two firms and create a strong full-service energy data company in September 2023. The companies’ shareholders gave their support for the merger in December, followed by clearance from the Norwegian Competition Authority this April.
Following the completion of its review, the UK’s CMA has now given its unconditional clearance of the transaction.
With all conditions for the merger satisfied, the parties will work towards completion on July 1, as previously communicated. Further information and key dates are expected to be provided shortly.
Rune Olav Pedersen , President and CEO of PGS, said: “With clearance from the CMA, all merger conditions are satisfied. I believe that the merger will benefit all stakeholders. The combined company will provide a more complete and diversified geophysical offering to customers, more opportunities for employees and value to shareholders.”
According to PGS and TGS, the merger will establish the combined company as a full-service geophysical data company with a strong offering in all segments, including multi-client data, streamer data acquisition, ocean bottom node (OBN) data acquisition, imaging, and new energy data. The combined company sees significant growth opportunities in new energy with complementary technology offerings for carbon capture and storage (CCS) and offshore wind.
Kristian Johansen and Sven Børre Larsen will continue as CEO and CFO post-transaction.
“TGS is pleased to note that all conditions for the merger have been fulfilled now that we have received CMA clearance. We look forward to completing the merger on 1 July 2024 and bringing the strength and breadth of our combined service offerings to the market,” said Kristian Johansen , CEO of TGS.