The shareholders of each company would own about 50 percent of the combined company, which would be named TechnipFMC. It would have more than 49,000 employees operating in 45 countries. FMC is based in Houston and Technip is based in Paris. The combined company would be based in Paris.
The announcement comes just two weeks after two industry behemoths Halliburton and Baker Hughes, facing resistance the U.S. Justice Department over monopoly concerns, abandoned a $35 billion tie-up.
Companies in the energy sector are trying to drive down costs and have laid off thousands of workers because of tumbling oil and natural gas prices.