US conglomerate GE is the front-runner to snap up North Sea service company Expro, the Press and Journal understands.
Industry sources say GE is ready to pay about £3billion for the UK well-flow management specialists in a deal expected to go through later this year.
The move would see GE become a major worldwide player in the service industry – big enough to rival Halliburton and Schlumberger, who are also reported to be interested in the Aberdeen and Great Yarmouth-based firm.
Expro has declined to comment on reports that it is up for sale, and last night GE remain tight-lipped about the deal.
“I am afraid we do not comment on market rumour,” a spokesman said.
City insiders say private equity group Arle Capital Partners is planning to either sell or float the company at some point this year.
Arle, private-equity firm Alpinvest Partners NV and Goldman Sachs Group Inc – which jointly own Expro – are working with Goldman and Deutsche Bank AG to advise on options.
It is understood that Arle is soliciting bids, while the other parties see an initial public offering as giving the best value.
However, a source close to Expro believes that GE has the “deepest pockets” for a deal.
“You could not rule out completely the possibility of a reckless offer from other private-equity firms, but I think those days are gone,” he said.
“GE has the deepest pockets and it could outbid any other interested parties. Although GE does already own another Aberdeen oil service company in Vetco Gray, the two would be complementary – there is no real overlap.”
He added: “Expro is one of the last big independents in the market and taking it over would be transformational for an acquirer. Buying Expro would see GE finally joining in properly in the worldwide service business.
“Expro would give them a global platform to launch a full-blown operation. This would push them into the same league as Halliburton, Schlumberger, Baker Hughes and Weatherford.”
Candover, Goldman and Alpinvest bought Expro in 2008 after an intense bidding war with Halliburton. Set up in Great Yarmouth in 1973, Expro provides a range of oil and gas well management services across 50 countries.