FMC Technologies and Technip merger

Overview:

• Houston based FMC Technologies and Paris based Technip have agreed to merge and will form a large new market player in the oil and gas sector. 
• The new company, known as TechnipFMC will be valued at around $13 billion, based on a combined revenue of around $20 billion in 2015 and will utilise the combined expertise of both companies to create a market leader in subsea, surface and onshore/offshore technologies. 
• The merger will allow for significant accelerated growth for both companies, reduce costs and enhance customer success by diversifying revenue mix. 
• The two companies have entered into a memorandum of understanding that is likely to be closed in early 2017 through a European cross-border merger, after a new English company absorbs Technip and initiates a reverse triangular merger through which FMC Technologies will become a subsidiary of the new company.
• Goldman Sachs and Rothschild are acting as financial advisers to Technip.
• Evercore and Société Générale are acting as financial advisers to FMC Technologies.

John Crabb - Journalist