FMC Technologies and Technip (present in 45 countries) recently announced the merging of the two companies to form a global leader that will redefine the production and transformation of oil and gas.
Local FMC officials were contacted for comment on this story, but the E-T was referred to the corporate office and was given a press release detailing the merger.
“The combined company, which will be called TechnipFMC, would have an equity value of $13 billion based on pre-announcement share prices,” the release states. “The companies have entered into a memorandum of understanding and expect to execute a definitive business combination agreement to combine the companies in an all-stock merger transaction.”
Under these terms of the MOU, shareholders of FMC Technologies will receive one share of the new company for each share of FMC and shareholders of Technip will receive two shares of the new company for each share of Technip.
“The combined company will offer a new generation of comprehensive solutions in Subsea, Surface and Onshore/Offshore to reduce the cost of producing and transforming hydrocarbons,” the release states. “TechnipFMC’s flexible commercial model will provide both integrated and discrete solutions to customers across the value chain.”
As of March 2016, the two companies had consolidated backlog of approximately $20 billion together.
“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 capitalize on new opportunities and drive accelerated growth,” John Gremp, chairman and chief executive office of FMC, said.
The company will have three operational headquarters - one in Houston, one in Paris, France, and one in London, United Kingdom.
After the boards of both companies unanimously approved the combination, the transaction is expected to close early in 2017.
“Technip and FMC Technologies both have long track records of innovations and commitment to helping their clients meet the challenges of the oil and gas industry,” Thierry Pilenko, who will serve as the executive chairman of TechnipFMC, said. “I am confident that we can quickly demonstrate the power of TechnipFMC to our clients, our people and our shareholders.”