Technip and FMC Technologies announced today that the companies are to join forces in a US$13 billion (£8.8 billion) deal. The combined company will be called TechnipFMC, the companies informed.
“Together, TechnipFMC can add more value across Subsea, Surface and Onshore/Offshore, enabling us to accelerate growth”, Technip Chairman and Chief Executive Officer Thierry Pilenko, said.
Technip And FCM In $13 Billion Merger
According to the companies, the merger enables the creation of an industry leader driven by technology and innovation, building “a comprehensive and flexible offering across each market from concept to project delivery and beyond”.
Financially speaking, the move involves combined 2015 revenue of US$20 billion (£13.6 billion). Technip shareholders are to receive 2.0 shares of the combined company for each share of Technip, while FMC Technologies shareholders are to receive 1.0 share of the combined company for each share of FMC Technologies.
Overall, the combined company is expected to deliver at least US$400 million (£273.2 million) in annual pre-tax cost synergies in 2019, the companies stated.
“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”, said FMC Technologies President and Chief Operating Officer, Doug Pferdehirt.
“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 created customer success”, he added.
“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”, he stated further.