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.
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