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Paris - Oil and gas services companies Technip of France and American peer FMC Technologies said on Thursday they had agreed to merge, creating one of the world's top companies in the sector.
"The companies will combine to create a global leader that will drive change by redefining the production and transformation of oil and gas," they said.
The new company, called TechnipFMC, will be worth $13bn and generate sales of around $20bn.
By comparison, this is around half of the revenues posted by global sector leader Schlumberger, with the tie-up likely to propel the combined group into the top five oil services providers in the world.
Its shares are to be listed in New York and Paris.
The merger deepens an existing alliance between both companies and is to generate "at least" $400m in annual savings from synergies within three years.
Comprehensive solutions
Both Technip and FMC provide project management, engineering and construction for the energy sector, with FMC also specialising in subsea systems. Together, they employ around 49 000 people.
"The combined company will offer a new generation of comprehensive solutions in subsea, surface and onshore/offshore to reduce the cost of producing and transforming hydrocarbons," they said.
No cash will change hands. Technip shareholders are to receive two shares in the new company for each Technip share and the conversion rate for FMC shareholders will be one for one.
The new company will be registered in Britain with operational headquarters in Paris.
