Paris-based LNG engineer Technip has agreed to join forces with Houston-based FMC Technologies.
According to a joint statement, the two companies have entered into a memorandum of understanding and expect to execute the definitive business combination agreement, and combine into one company named TechnipFMC in an all-stock merger transaction.
“Under the terms of the MOU, Technip shareholders will receive two shares of the new company for each share of Technip, and FMC Technologies shareholders will receive one share of the new company for each share of FMC Technologies,” the statement reads.
Each company’s shareholders will own close to 50 percent of the combined company. The two companies have already created a 50/50 joint venture, Forsys Subsea.
The merger would combine Technip’s systems and solutions, assets, engineering and project management capabilities with FMC Technologies’ technology, manufacturing and service capabilities. The joint company aims to redefine “the production and transformation of oil and gas.”
The group will organize its activities into five business units covering Surface, Subsea Services, Products, Subsea Projects, and Onshore/Offshore, with the first two headquartered in Houston and the others in Paris.
Technip chairman and CEO, Thierry Pilenko, will serve as executive chairman of TechnipFMC’s board of directors, while Doug Pferdehirt, currently FMC Technologies’ president and COO, will serve as CEO of TechnipFMC.
Boards of both companies unanimously approved the combination, however, the merger needs the approval of both Technip and FMC Technologies shareholders and regulatory approvals and consents. The transaction is expected to close in early 2017.
LNG World News Staff