Reports out Wednesday afternoon suggest FMC Technologies may merge with Technip in a deal that would move the company’s headquarters outside of Houston.
Sources told Reuters that French-based Technip is exploring a sale and has held talks with US-based FMC Technologies.
The combined company would have a market value upwards of $13bn. Terms and conditions have not yet been agreed upon and no deal has yet been reached, sources say.
Technip has held discussions with other buyers, but their relationship with FMC suggests FMC would be the most desirable acquirer. Through their Forsys JV, the two companies know each other well and have been working together for the past 8 months or so on subsea solutions. A combination deal would suggest that the Forsys concept is yielding desirable results.
Technip CEO Thierry Pilenko left, FMC Technologies CEO John Gremp right – the two have worked together recently on a subsea JV
As we’ve seen with the Schlumberger for Cameron deal, these sorts of JVs (OneSubsea and now perhaps Forsys) can lead to further consolidation in the service / equipment space.
Bloomberg reported Wednesday that the deal could be structured as an inversion, whereby Houston-based FMC Technologies would move its headquarters outside the US to a more tax-friendly regime.