TechnipFMC Resumes Separation Plans
“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. We continue to believe this action would allow both businesses to thrive independently within their sectors, enabling each to unlock significant shareholder value,” said Doug Pferdehirt, TechnipFMC’s chairman and CEO.
The transaction is expected to be structured as a spin-off of a majority stake in Technip Energies. TechnipFMC will distribute 50.1% of the shares in Technip Energies to existing TechnipFMC shareholders on a pro rata basis. TechnipFMC will retain ownership of the remaining 49.9% of Technip Energies’ shares.
Bpifrance, a major shareholder of TechnipFMC, is supporting the move and intends to invest $200 million in Technip Energies by acquiring shares from TechnipFMC’s retained stake in Technip Energies.
TechnipFMC said the separation will enhance both companies’ focus on their respective strategies and provide improved flexibility and growth opportunities. Pferdehirt will remain as chairman and CEO of TechnipFMC, which will remain incorporated in the UK with headquarters in Houston, Texas, USA.
TechnipEnergies will have leadership positions in LNG, hydrogen and ethylene and growing market positions in sustainable chemistry and CO2 management. It will be incorporated in the Netherlands with its headquarters in Paris, France. Arnaud Pieton, currently president of Technip Energies, will become CEO.
The transaction is expected to complete in the first quarter of 2021.
Author: Elaine Burridge, Freelance Journalist