Technip has released a statement claiming that it will combine with FMC Technologies Inc. to create a combined company – TechnipFMC. The company will have an equity value of US$13 billion based on pre-announcement share prices.
Both parties have entered a Memorandum of Understanding (MoU) and are planning to execute a definitive business combination agreement to combine the two companies in an all-stock merger transaction. Under the MoU, Technip shareholders will receive two shares of TechnipFMC for each share of Technip. FMC Technologies shareholders, meanwhile, will receive just one share of TechnipFMC for each share of FMC Technologies.
The combination will build on the companies’ previous collaboration through their joint venture (JV), Forsys Subsea. The new company will offer solutions in subsea, surface and onshore/offshore.
The Chairman and CEO of FMC Technologies, John Gremp, said: “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.”
Thierry Pilenko, who is currently the Chairman and CEO of Technip, and will serve as the Executive Chairman of TechnipFMC, added: “Technip and FMC Technologies both have long track records of innovation and commitment to helping their clients meet the challenges of the oil and gas industry. A year ago, we were at the forefront of recognising the importance of a broader view of our clients’ challenges and seized the opportunity that working together in our alliance could bring. Today, we want to take this strategy further and across the full footprint of the two companies. We have complementary skills, technologies and capabilities, which our customers can access on an integrated basis or separately as they prefer. Together, TechnipFMC can add more value across subsea, surface and onshore/offshore, enabling us to accelerate out growth. I am confident that we can quickly demonstrate the power of TechnipFMC to our clients, our people and our shareholders.”
Doug Pferdehirt, who currently serves as the President and COO of FMC Technologies, and will later serve as the CEO of TechnipFMC, said: “Our alliance has shown that as customers evaluate solutions, they are involving us in the process earlier and to a greater degree than ever before. The more they seek our recommendations and new products, the more we differentiate ourselves from the competition. This transaction will allow us to deliver even greater benefits to our customers through a broadened portfolio that provides a unique set of integrated technologies and competencies that are underpinned by a history of developing rich partnerships and creating customer success. We look forward to rapidly bringing together the outstanding employees and cultures of both companies, as well as the complementary capabilities of our organisations, to position the combined company at the forefront of a new generation of solutions for the oil and gas industry.”
The combined company will have its operational headquarters in Paris (France), Houston (US) and London (UK). The global integrated research and development centre will be situated in France. The transaction is expected to close in early 2017, although it is subject to approval from shareholders from both companies, as well as regulatory approval, and customary closing conditions.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19052016/technip-announces-merger-with-fmc-technologies-2473/