Photo: Daniel Acker / Bloomberg
1998, <b>Exxon</b> and <b>Mobil</b> merge<br>
$80.3 billion stock deal
1998, <b>Exxon</b> and <b>Mobil</b> merge<br>
$80.3 billion stock deal
Photo: Daniel Acker / Bloomberg
2004, <b>Royal Dutch Shell</b> and <b>Shell Transport & Trading</b> merge<br>
$80.1 billion stock deal
2004, <b>Royal Dutch Shell</b> and <b>Shell Transport & Trading</b> merge<br>
$80.1 billion stock deal
Photo: Carla Gottgens / Bloomberg
1998, <b>BP Plc</b> merges with <b>BP Corp. North America Inc.</b><br>
$55.9 billion stock deal
1998, <b>BP Plc</b> merges with <b>BP Corp. North America Inc.</b><br>
$55.9 billion stock deal
Photo: Alastair Grant / Associated Press
1999, <b>Total SA</b> acquires <b>Elf Acquitaine SA</b><br>
$52.3 billion stock deal
1999, <b>Total SA</b> acquires <b>Elf Acquitaine SA</b><br>
$52.3 billion stock deal
Photo: Balint Porneczi / Bloomberg
2000, <b>Chevron Corp.</b> buys <b>Texaco</b><br>
$43.6 billion stock deal
2000, <b>Chevron Corp.</b> buys <b>Texaco</b><br>
$43.6 billion stock deal
Photo: ETHAN MILLER / AP
2010, <b>Petrobras</b> buys rights for offshore oil reserves from <b>the Brazilian government</b><br>
$42.5 billion stock deal
2010, <b>Petrobras</b> buys rights for offshore oil reserves from <b>the Brazilian government</b><br>
$42.5 billion stock deal
Photo: VANDERLEI ALMEIDA / AFP/Getty Images
2009, <b>Exxon Mobil</b> buys <b>XTO Energy</b><br>
$41.4 billion stock deal
2009, <b>Exxon Mobil</b> buys <b>XTO Energy</b><br>
$41.4 billion stock deal
Photo: Matt Nager / Bloomberg
2011, <b>Kinder Morgan Inc.</b> acquires <b>El Paso LLC</b><br>
$37.6 billion cash-and-stock deal
2011, <b>Kinder Morgan Inc.</b> acquires <b>El Paso LLC</b><br>
$37.6 billion cash-and-stock deal
Photo: DAVID J. PHILLIP / AP
2005, <b>ConocoPhillips</b> buys <b>Burlington Resources Inc.</b><br>
$36.1 billion cash-and-stock deal
2005, <b>ConocoPhillips</b> buys <b>Burlington Resources Inc.</b><br>
$36.1 billion cash-and-stock deal
Photo: David Ryder / Bloomberg
1999, <b>BP Plc</b> buys <b>Atlantic Richfield Co. (ARCO)</b><br>
$31.8 billion stock-and-debt deal
1999, <b>BP Plc</b> buys <b>Atlantic Richfield Co. (ARCO)</b><br>
$31.8 billion stock-and-debt deal
Photo: DAMIAN DOVARGANES / AP
2012, <b>Roneft OAO</b> and <b>Rosneft Ltd. merge</b><br>
$28 billion cash deal
2012, <b>Roneft OAO</b> and <b>Rosneft Ltd. merge</b><br>
$28 billion cash deal
Photo: Mikhail Metzel / Associated Press
2006, <b>Goldman Sachs</b>, <b>American International Group</b>, <b>Riverstone Holdings</b>, and <b>Highstar Capital</b> buy <b>Kinder Morgan Kansas Inc.</b><br>
$27.4 billion cash deal
less
2006, <b>Goldman Sachs</b>, <b>American International Group</b>, <b>Riverstone Holdings</b>, and <b>Highstar Capital</b> buy <b>Kinder Morgan Kansas Inc.</b><br>
$27.4 billion cash
... more
Photo: Richard Drew / Associated Press
2006, <b>Statoil</b> buys <b>Norsk Hydro ASA</b><br>
$27.3 billion stock deal
2006, <b>Statoil</b> buys <b>Norsk Hydro ASA</b><br>
$27.3 billion stock deal
Photo: Kent Skibstad / Associated Press
2001, <b>ConocoPhillips Co.</b> merges with <b>ConocoPhillips Holding Co.</b><br>
$25.8 billion stock deal
2001, <b>ConocoPhillips Co.</b> merges with <b>ConocoPhillips Holding Co.</b><br>
$25.8 billion stock deal
Photo: John Badman / Associated Press
2005, <b>Chevron</b> buys <b>Unocal Corp.</b><br>
$20 billion cash-and-stock deal
2005, <b>Chevron</b> buys <b>Unocal Corp.</b><br>
$20 billion cash-and-stock deal
Photo: CARLOS CHAVEZ / TPN
2006, <b>Anadarko Petroleum</b> buys <b>Kerr-McGee Corp.</b><br>
$18.3 billion cash deal
2006, <b>Anadarko Petroleum</b> buys <b>Kerr-McGee Corp.</b><br>
$18.3 billion cash deal
Photo: MELISSA PHILLIP / HOUSTON CHRONICLE
2007, <b>Transocean</b> buys <b>GlobalSantaFe Corp.</b><br>
$18.2 billion cash-and-stock deal
2007, <b>Transocean</b> buys <b>GlobalSantaFe Corp.</b><br>
$18.2 billion cash-and-stock deal
2012, <b>China National Offshore Oil Corp. (CNOOC)</b> buys <b>Nexen Energy</b><br>
$17.4 billion cash deal
2012, <b>China National Offshore Oil Corp. (CNOOC)</b> buys <b>Nexen Energy</b><br>
$17.4 billion cash deal
Photo: AFP / AFP/Getty Images
2009, <b>Suncor Energy</b> buys <b>Petro-Canada</b><br>
$17 billion cash deal
2009, <b>Suncor Energy</b> buys <b>Petro-Canada</b><br>
$17 billion cash deal
Photo: Steve Russell / Toronto Star
1999, <b>Repsol SA</b> buys <b>Yacimientos Petrolíferos Fiscales (YPF SA)</b><br>
$15.5 billion cash-and-debt deal
1999, <b>Repsol SA</b> buys <b>Yacimientos Petrolíferos Fiscales (YPF SA)</b><br>
$15.5 billion cash-and-debt deal
Photo: Natacha Pisarenko / Associated Press
FMC Technologies agrees to merge with French firm Technip
FMC Technologies Inc. and Technip SA said Thursday that they plan an all-stock merger that will combine the two into a new $13 billion business during a crippling oil bust.
The merger will create TechnipFMC, a company that would have had $20 billion in revenue in 2015. It will combine Houston-based FMC Technologies’ expertise in manufacturing underwater equipment with Paris-based Tenchnip’s broad construction expertise.
It is the latest major deal to reshape an oil services industry seeking to survive the bust by merging to cut costs and offer more essential services to customers. Previously, the industry leader Schlumberger bought Houston’s Cameron International Corp.. The Houston companies Halliburton and Baker Hughes, the second and third largest energy services companies respectively, also attempted a merger, which was scuttled after running into strong opposition from antitrust regulators.
“This is about redefining, reshaping our industry,” said Doug Pferdehirt, President and Chief Operating Officer of FMC, who will be the chief executive of the new company.
Thierry Pilenko, Technip Chairman and CEO, said that the combination would allow more efficient workers laying out and installing undersea infrastructure to work directly with those manufacturing the equipment. “We’re going to work in a much more integrated manner.”
Oil services companies have cut thousands of jobs as they seek to keep costs in line with falling revenues. Houston’s FMC had cut 2,000 workers in early 2015 and continued to trim payrolls as conditions worsened.
Both FMC and Technip have a large presence in Houston. FMC recently consolidated its Houston offices into a new campus northeast of the city at Generation Park, where it expects 1,500 workers to be stationed by the end of the summer. FMC said in April it had 3,200 workers in Houston and 16,400 worldwide. Technip, which has its Houston headquarters off Interstate 10 in the Energy Corridor, has about 2,200 workers in Houston.
FMC and Technip estimated the merger would bring them as much as $400 million in annual cost savings by the end of the decade and said the new company would have one of the strongest balance sheets in the industry.
The two service companies had previously cooperated on a subsea joint-venture called Forsys Subsea. Together, they had sought to lower the cost of offshore production infrastructure by as much as one-third, according to a note to clients by Houston investment bank Tudor Pickering Holt & Co. The success of the merger will depend on the broader combination’s ability to meet or exceed that cost-saving benchmark, analyst told clients in a Thursday morning note.
“[The] Long-term strategic rationale behind deal is clear, but execution will matter more,” Tudor Pickering analysts wrote.
Technip Chairman and CEO Pilenko will move to Executive Chairman of TechnipFMC’s board. Doug Pferdehirt, FMC Technologies’ President and COO, will serve as CEO of TechnipFMC. The company will keep three headquarters in Paris, Houston and London.
The deal is expected to close in early 2017. At that time, shares of Technip stock will be converted into two shares of TechnipFMC and each FMC Technologies shareholder will get one share of TechnipFMC.