TechnipFMC reported Sunday that it has put its planned separation into two companies on hold.
In a written statement emailed to Rigzone, TechnipFMC noted the COVID-19 pandemic, plummeting commodity prices and greater equity market volatility have created market conductions that discourage moving ahead – for now - with its plan to separate into TechnipFMC and Technip Energies.
As Rigzone reported earlier this year, TechnipFMC had expected to complete the transaction during the first half of 2020. Under the plan, TechnipFMC – previously identified with the generic moniker “RemainCo” – would be a fully integrated technology and services provider with headquarters in Houston. It would concentrate on subsea and surface technologies, an August 2019 Rigzone article states.
Incorporated in the Netherlands and headquartered in Paris, Technip Energies – also known as “SpinCo” – would pursue engineering and construction opportunities in the downstream, liquefied natural gas, renewables and other markets and incorporate the current firm’s Onshore/Offshore, Loading Systems and Cybernetix units.
Despite delaying the separation, TechnipFMC reiterated that it has not changed the “strategic rationale” for separating the company into two firms.
“The Company is committed to the transaction and continues its preparations to ensure that the two companies are ready for separation when the markets sufficiently recover,” TechnipFMC stated.
To contact the author, email mveazey@rigzone.com.
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