Texas and France came together Tuesday with the newly merged TechnipFMC launching as arguably the world’s largest player focused on offshore energy services.
The $13 billion merger of Houston-based FMC Technologies and France’s Technip was first announced in May and cleared all regulatory hurdles without many issues. The new TechnipFMC began trading Tuesday under FMC’s old stock ticker, “FTI.”
The merged companies have cut about 1,500 combined jobs since September. The two companies employed about 45,500 people in the fall, but TechnipFMC announced its headcount at 44,000 on Tuesday. When the merger was first announced, they employed about 5,300 people in Houston.
The new company will maintain three headquarters in Houston, Paris and London under new Houston-based CEO Doug Pferdehirt, who previously worked as FMC’s chief operating officer. Former Technip chairman and CEO Thierry Pilenko is the new executive chairman.
“This is a transformational day for TechnipFMC and our employees,” Pilenko said in Tuesday’s announcement. “As one company, we can make oil and gas projects more viable, driving value for our clients and shareholders.”
Under the terms of the merger agreement, FMC shareholders received one share of the combined company for each existing FMC share, while Technip investors got two shares of the combined company for each share of Technip.
The merged company employs nearly 16,000 fewer people than they did as separate entities before the oil bust began in the back half of 2014.
Technip previously employed 40,000 people in 2014, but cut roughly 10,000 jobs during the bust. Likewise, FMC staffed nearly 20,000 people and shrunk down to 14,000. Two companies that once employed 60,000 combined workers are now merged with a staff of about 44,000.