Technip and FMC Technologies are the next two oil service firms to enter into a merger commitment. The company reported that they will combine to create a “global leader that will drive change by redefining the production and transformation of oil and gas”.
The combined company, which will be called TechnipFMC, would have an equity value of $13 billion based on pre-announcement share prices.
The companies have entered into a MoU and are expected to execute a definitive business combination agreement to combine the companies 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 shareholders will receive one share of the new company for each share of FMC. Each company’s shareholders will own close to 50% of the combined company.