Oil services companies, FMC Technologies and Technip have announced plans for US$13bn merger
The combined company from the merger between Technip, which is based in Paris and is a major player in project management, engineering and construction for the energy industry and with FMC, which provides technologies and services to the oil and gas industry, with head quarters in Houston, will be called TechnipFMC.
The two companies had a combined revenue of US$20bn in 2015 and have more than 49,000 employees across 45 countries. The companies said in a joint statement that they expected around US$400mn in annual cost savings from the all-stock deal by 2019.
FMC investors are to get one share in the company, while those with Technip shares will get two. Each company’s shareholders will own close to 50 per cent of the combined company. The deal will build on the existing joint venture between the two companies, Forsys Subsea, which involves underwater operations. TechnipFMC aims to offer a new generation of comprehensive solutions in subsea, surface and onshore/offshore to reduce the cost of producing and transforming hydrocarbons.
Technip chairman and CEO, Thierry Pilenko, will serve as executive chairman of TechnipFMC’s board of directors and FMC president and COO Douglas J Pferdehirt will serve as its CEO. FMC Technologies chairman and CEO John Grempsaid, “This is a compelling combination that will create significant additional value for clients and all shareholders, by expanding the success that FMC Technologies and Technip have achieved through our alliance and joint venture, to capitalise on new opportunities and drive accelerated growth.”
