NEW YORK (AP) — FMC Technologies will attempt to merge with Technip in an all-stock deal worth about $13 billion to create a larger player in the energy services sector.
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.
FMC and Technip expect the deal to close in early 2017. Technip Chairman and CEO Thierry Pilenko will become chairman of the combined company. Doug Pferdehirt, currently FMC's president and chief operating officer, will become CEO of the combined company. Pferdehirt is already slated to become CEO of FMC on Sept. 1.