Norwegian seismic firms TGS and PGS have received merger approval from the Norwegian Competition Authority (NCA), brining them one step closer to establish a premier energy data company.
The merger between the companies, first announced in September 2023, has been subject to review by the competition authorities in the UK as well as in Norway.
NCA has on April 17, 2024, cleared the merger of the two companies, whereby in the UK, the UK Competition Market Authority (CMA) is still conducting its phase I review. The deadline for the CMA to announce clearance or phase II review is June 11, 2024.
"TGS has had a good dialogue with the Norwegian Competition Authority since announcement of the transaction and is pleased to have received the required clearance today. We now look forward to receiving clearance also from the UK authorities in due course, and moving towards completion of the merge,” said Kristian Johansen, CEO of TGS.
"The Norwegian Competition Authorities decided in mid-February to assess the TGS-PGS merger transaction in a more detailed phase II review. Our impression is that they have done a thorough assessment, and we are pleased they have now approved the merger,” added Rune Olav Pedersen, President and CEO of PGS.
On this basis, the parties continue to expect and work towards completion of the merger planned during the second quarter of 2024, as previously communicated.
Completion of the merger otherwise remains conditional on the closing conditions described in the merger plan. The shareholders of both parties have approved the merger.
Following the completion of the Merger, TGS and PGS shareholders will own approximately 2/3 and 1/3 of the combined company, respectively, on the basis of the share capital of each of the companies at the time of the agreed merger.