TechnipFMC Resumes Separation Process
UK-registered TechnipFMC on January 7 said it had resumed work toward its planned separation into two independent and publicly traded companies. It put the split on hold last March last year owing to market uncertainties.
The decision to split was announced in August 2019, three years after the merger of Technip and FMC Technologies, which established TechnipFMC as the only fully-integrated subsea provider. The company plans to split into TechnipFMC, an integrated technology and services provider; and Technip Energies, an engineering and technology player.
“The separation would enhance TechnipFMC’s and Technip Energies’ focus on their respective strategies and provide both improved flexibility and growth opportunities, with each company uniquely positioned to capitalise on the energy transition,” the company said.
The transaction is expected to be structured as a spin-off of a majority stake in TechnipFMC’s Technip Energies segment. The separation is expected to be completed in the first quarter of 2021, subject to customary conditions and regulatory approvals.
“We are very excited to announce the resumption of activities related to the separation and the creation of two industry-leading diversified pure-play companies poised to capitalise on the energy transition,” Doug Pferdehirt, CEO of TechnipFMC, stated. “The increased clarity we now have in the market outlook coupled with our demonstrated ability to successfully execute projects in this most challenging period give us confidence to move forward with the separation.”
Bpifrance, which has been a substantial shareholder of TechnipFMC since 2009, is committed to support the transaction and intends to invest $200mn in Technip Energies by acquiring shares from TechnipFMC’s retained stake, the company said.
Shares received by Bpifrance for the new investment would be in addition to those it will receive as a current shareholder of TechnipFMC. As a result, Bpifrance will become a long-term reference shareholder of Technip Energies.