20 May Technip Group and FMC Tech create $13b joint company
Oil and gas service giants French Technip (EPA:TEC) and American FMC Technologies (NYSE:FTI) have announced a merger agreement to create a joint company.
The new company, TechnipFMC, is worth US$14 billion and anticipated to produce sales of $20 billion.
The pending deal, which will create the world’s second largest listed oil services group by revenues will save the firms at least $400 million a year starting in
2019. The new merger will employ more than 49,000 people in over 45 countries.
TechnipFMC will be dual listed in Paris and New York, domiciled in the UK and have operational headquarters in London, Paris and Houston.
Doug Pferdehirt, president of FMC and intended chief executive of TechnipFMC denied the deal was being made to minimise both company’s tax bill.
“We have not determined what the tax rate of the new company will be – we pay tax wherever we generate review,” Pferdehirt said. “Tax was not the major concern here.”
Last year the two companies created Forsys Subsea, which is focused on the design and construction advancements for subsea oil and gas fields.
Thierry Pilenko, CEO of Technip explained: “We have the complementary skills, technologies and capabilities which our customers can access on an integrated basis or separately as they prefer.”