While many expected an energy industry shopping spree in the wake of low crude prices, Total CFO Patrick de La Chevardiere said potential takeover targets are still too expensive for his company’s taste.
De La Chevardiere told Bloomberg on Tuesday that Total has been presented with takeover opportunities but the price points haven’t been right yet.
“All potential targets brought to us by bankers haven’t yet adjusted in terms of prices. They are still expensive companies. Their share prices haven’t adjusted to the new oil price environment,” he told Bloomberg TV.
De La Chevardiere did not disclose the names of potential acquisition targets.
The CFO’s remarks echo those made last week by Total CEO Patrick Pouyanne who said his company is not feeling pressure to make acquisitions despite Royal Dutch Shell’s $70 billion purchase of BG Group.
Servives giant Halliburton also agreed to buy rival Baker Hughes in November for $34.6 billion in cash and stock while Spain’s Repsol scooped up Canada’s Talisman Energy for $8.3 billion a month later.
Pouyanne said that despite the deals Total has adopted a wait and see approach before committing to any deals.
“The opportunities will really come if oil prices remain low over a longer period. Then you will see real opportunities for major companies like Total,” Pouyanne said at a conference earlier this month.