Under the terms of a memorandum of understanding, 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. Each company’s shareholders will own close to 50% of the combined company.
TechnipFMC 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. The two oil field services firms were already engaged in the Forsys Subsea joint venture formed last year (OGJ Online, Mar. 23, 2015).
“The new company will combine Technip’s innovative systems and solutions, state-of-the-art assets, engineering strengths, and project management capabilities with FMC Technologies' leading technology, manufacturing, and service capabilities,” the firms explained in a joint statement.
Doug Pferdehirt, who earlier this month was appointed president and chief executive officer of FMC Technologies effective Sept. 1 (OGJ Online, May 10, 2016), will serve as chief executive officer of TechnipFMC. Thierry Pilenko, Technip chairman and chief executive officer, will take the role of executive chairman of the new company.
TechnipFMC’s operational headquarters will be in Paris, where the executive chairman will have his principal office; in Houston, where the chief executive officer will have his principal office; and in London, where the Forsys Subsea JV is headquartered and the new corporation will be domiciled.
The move follows the cancellation earlier this month of merger plans between Halliburton Co. and Baker Hughes Inc. due to “challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics,” Halliburton Chairman and Chief Executive Officer Dave Lesar said in a statement (OGJ Online, May 2, 2016).
Last August, Schlumberger Ltd. agreed to buy Cameron International Corp. in a deal valued at $14.8 billion (OGJ Online, Aug. 26, 2015). After that deal’s announcement, Paal Kibsgaard, Schlumberger chief executive officer, commented, “With oil prices now at lower levels, oil field services companies that deliver innovative technology and greater integration while improving efficiency…will outperform the market.”
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