Mon, Jun. 27, 12:48 PM
- FMC Technologies (FTI -4.8%) and Technip (OTCQX:TKPPY) say their proposed $13B merger was cleared by U.S. antitrust authorities, although antitrust reviews are pending in other countries.
- The speed of the U.S. antitrust clearance in this case is in marked contrast to the attempted merger between Halliburton and Baker Hughes, which was sunk last month after hitting regulatory challenges in the U.S. and elsewhere.
- The companies say the combination will enable pre-tax cost synergies of ~$200M in 2018 and at least $400M annually from 2019 on.
Thu, May 19, 3:27 PM
- FMC Technologies (FTI -4%) is sharply lower following news of its merger with oilfield services rival Technip (OTCQX:TKPPY +5.6%), which Citigroup analysts say leaves FMC shareholders “on the short end” of the deal.
- "While half of the net present value of the synergies into perpetuity outweighs the premium paid to align ownership 50/50, we believe FMC shareholders come out on the short end as they should hold a majority of the combined entity due to a superior portfolio given the higher execution risk, margin volatility and outlook uncertainty [for Technip's]s E&C and Installation segments and FMC’s exposure to shale recovery within its onshore business," Citi says.
- Other analysts are more favorable: Canaccord says the merger would make the new company the “undisputed leader” in subsea project development, and Bernstein believes the deal is a step toward solving the industry’s endemic problem of high costs.
Thu, May 19, 4:12 AM
- Lower energy prices are continuing to drive consolidation in the oil services sector, with France's Technip (OTCQX:TKPPY) announcing an all-stock merger with U.S. rival FMC Technologies (NYSE:FTI).
- "We have complementary skills, technologies and capabilities," Technip CEO Thierry Pilenko declared. "Together, TechnipFMC can add more value across Subsea, Surface and Onshore/Offshore, enabling us to accelerate our growth."
- The transaction is expected to deliver annual pretax savings of at least $400M by 2019 and boost EPS significantly.
- FTI +2.4% premarket
Dec. 10, 2015, 8:07 AM
- Technip (OTCQX:TNHPF, OTCQX:TKPPY) says it is not involved in any talks about strategic transactions, following reports that it was discussing a potential combination with FMC Technologies (NYSE:FTI).
- Reuters and Bloomberg had reported that the French oilfield services company is exploring a sale and has engaged in discussions with FMC Tech.
Dec. 9, 2015, 4:48 PM
- FMC Technologies (NYSE:FTI) +3.3% AH following reports that French oilfield services company Technip (OTCQX:TNHPF, OTCQX:TKPPY) is exploring a sale and has held talks with FMC over a possible merger.
- Negotiations between the two companies, who formed a joint venture earlier this year, are at an advanced stage and a deal reportedly could be announced before the end of this year.
- The deal could be structured as an inversion, which may allow Houston-based FMC to move its headquarters to a country with lower taxes.
- Combining FMC and Technip would bring together the largest provider of subsea equipment to the industry with Europe’s biggest oil services provider.
Sep. 4, 2015, 12:23 PM
- Sclumberger’s (NYSE:SLB) purchase of Cameron International (NYSE:CAM) should easily close, with optimism growing that Halliburton's (NYSE:HAL) bid for Baker Hughes (NYSE:BHI) also will close, and the deals mean more oil company M&A is on the way, FBR Capital analyst Thomas Curran believes.
- The wave of heavyweight deals likely is not over yet, Curran says, seeing Weatherford (NYSE:WFT) as the highest probability takeout with the broadest set of plausible strategic suitors; National Oilwell Varco (NYSE:NOV) is viewed as having a high likelihood of entering into a big deal, although probably as an acquirer, and FMC Tech (NYSE:FTI) could puruse a full combination with Technip, its 50/50% JV partner in Forsys Subsea.
Aug. 26, 2015, 3:25 PM
- Analysts say Schlumberger’s (SLB -4.2%) acquisition of Cameron International (CAM +41.7%) is not particularly surprising, given SLB's two years of experience working alongside CAM through their OneSubsea joint venture and track record of soaking up JV partners.
- The combination effectively allows the two companies to extract the type of cost savings found at OneSubsea across the rest of their businesses; SLB thinks it can find pretax benefits of $600M in the second year after the deal, most of which will come from cost-cutting.
- Citigroup says the deal will firmly establish SLB as the dominant and most diversified oilfield service provider, with total estimated revenues for the combined entity of $46B in 2015, a figure the prospective Halliburton (HAL +2.3%) and Baker Hughes (BHI +2.5%) combo cannot match.
- SLB is making a strategic bet on a recovery in deepwater drilling, even if not in 2016, Tudor Pickering says; with 7M-plus bbl/day of global oil production coming from deepwater reservoirs, it makes sense that offshore activity eventually will rebound.
- The deal is not likely to touch off an M&A wave in the oilfield services industry because the global crude slump has strained the finances of many companies, leaving few able to make such a move, says Edward Jones analyst Rob Desai.
- But several potential acquisition targets in the services industry are higher: OII +8.3%, DRQ +7.4%, FTI +6.5%, NOV +4.1%, FET +3%.
Nov. 14, 2014, 12:48 PM
- Oil services companies are mostly higher as Halliburton (HAL +1.7%) is indeed in talks to buy Baker Hughes (BHI +0.5%), a deal that would provide a jolt to oilfield services companies contending with falling oil prices: SLB +0.4%, OIS +1.2%, SPN +2.3%, CAM +0.2%, FTI -0.3%, NOV -0.6%.
- Sterne Agee analyst Stephen Gengaro calls a potential HAL-BHI combo a “HAL of a Frac-ing Deal," seeing several positives for HAL including strengthening its relatively weak position in artificial lift and production chemicals which are critical to enhancing HAL’s mature field strategy, enabling it to leverage its unparalleled U.S. pressure pumping logistics chain to enhance the efficiency of BHI’s operations, and providing the opportunity for significant cost savings which likely would total $600M-$750M or more.
- While antitrust concerns could force some divestitures, Gengaro does not believe it would prevent a deal from happening.
- Other potentially attractive M&A targets among oil services companies could include Dril-Quip (DRQ +0.7%), Frank’s International (FI +2.6%) and Oceaneering (OII -0.2%), Simmons & Co. says.
Aug. 22, 2012, 5:08 PMConditions are ripe for large oilfield service and equipment companies - think HAL, SLB, NOV, CAM, FTI - to continue to snap up smaller firms and assets, Barclays says, citing new regulations encouraging high-specification equipment, operator demand for equipment capable of increasing efficiencies, and the ongoing build-out in offshore markets. (also) | Aug. 22, 2012, 5:08 PM | 1 Comment
Aug. 21, 2012, 2:52 PMStock investors have reacted in a subdued way to recent deals (I, II, III) for oilfield services firms that should boost the earnings of buyers, including National Oilwell Varco (NOV), FMC Tech (FTI) and Chicago Bridge & Iron (CBI), Tudor Pickering analysts say. Most of the targets, such as Pure Energy, have “healthy” exposure to North America, which analysts say investors "still view skeptically." | Aug. 21, 2012, 2:52 PM
Aug. 20, 2012, 8:29 AM
FMC Tech (FTI) agrees to acquire Canadian oilfield services company Pure Energy Services (PUEYF.PK) for $285M in cash. The C$11/share price values Pure at a premium of 39% over its Friday closing price in Toronto. FTI says the acquisition will help it expand its services business.| Aug. 20, 2012, 8:29 AM | 1 Comment