The widely expected sale of Aberdeen-based Expro to US industrial conglomerate GE is likely to be one of the largest deals in the worldwide oilfield service sector in 2014. GE will have to pay around £3billion for the UK well-flow management group.
The takeover will demonstrate the enduring appetite of large American oil service groups for acquiring north-east firms.
One of Aberdeen’s top dealmakers, Andrew Forsyth, said yesterday US companies were seeking the cutting-edge technology being developed by UK entrepreneurs.
Mr Forsyth, a partner of chartered accountant, tax and business adviser Simpson Forsyth, added: “All exploration and production groups want to keep a lid on soaring costs and the large service firms will play an important role in helping them.
“One way to do this is by the development and introduction of ever-more efficient new technology.
“Sometimes the big oil service players find it is easier financially and time-wise to buy the company which has created the technology they want, rather than trying to develop it themselves.
“Acquiring a UK rival can also help US companies break into new markets, both geographically and product-wise.”
Many US businesses are using OTC this week as an opportunity to check out Scottish exhibitors and their products without having to cross the Atlantic.
GE is particularly interested in Expro as it is one of the last big independents in the market and a takeover would be transformational for its oil and gas business.
The US industrial conglomerate owns another oil service company in Vetco Gray, which has a large north-east presence.
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