France’s Technip and US-based FMC Technologies have announced they will merge to create TechnipFMC, a move they say will redefine the production and transformation of oil and gas.
The two companies have signed an MOU and expect a definitive agreement to be reached, with each to own close to a 50% stake of the new company which has an equity value of around $13 billion.
TechnipFMC will have over 49,000 employees across more than 45 countries, with revenues of over $20 billion. Operational headquarters will be in Paris, Houston, and London.
Thierry Pilenko, Technip’s chairman and CEO, will serve as executive chairman of TechnipFMC while Doug Pferdehirt, FMC Technologies’ president and COO, will serve as CEO of TechnipFMC. Prior to the merger, Pferdehirt was appointed as CEO of FMC Technologies effective September 1.
Pilenko, commenting on the merger, stated, “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 recognizing 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.”
The merger is expected to be completed early 2017, subject to shareholder and regulatory approval.
