Stephen Simpson, CFA
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.
Dec. 15, 2014, 7:45 AM
- CGG -31% in Paris trading after Technip (OTCQX:TKPPY) says it is abandoning its pursuit of the company and will not make an offer directly to investors.
- Last month, Technip offered to acquire the French oil services company for €1.46B ($1.82B) but CGG rejected the approach.
- The proposal would have combined Technip, which provides engineering and construction services to the energy industry, with CGG, a provider of equipment and geological data processing services to the sector.
Nov. 20, 2014, 12:47 PM
- CGG (CGG -5.3%) earlier confirmed it was approached by Technip (OTCPK:TNHPF, OTCQX:TKPPY) with an unsolicited offer - which it rejected - but in the view of Goldman Sachs analyst Henry Tarr, there is not a strong strategic rationale for a deal, and possible synergies are limited.
- Diversification can, as in the Halliburton-Baker Hughes tie-up, have merit, but this deal looks more expansionist than defensive, WSJ's Helen Thomas reports, as CGG’s seismic imaging and exploration services are largely separate from the actual construction of projects.
- Technip seems to be making a long-dated bet on a recovery in activity, Sanford C. Bernstein analysts say, but with the volatile seismic cycle approaching another trough, a deal could put pressure on earnings as fleets lie idle.
Nov. 20, 2014, 7:38 AM
- Technip (OTCPK:TNHPF, OTCQX:TKPPY) says it has made a preliminary takeover offer of €1.46B ($1.83B) for smaller French oil services company CGG, which says it rejected the offer.
- Technip, which says it first approached CGG on Nov. 10, has offered €8.3/share in cash, a 27% premium over CGG’s closing share price yesterday.
- CGG -6.6% premarket after surging more than 22% late yesterday after word of the deal was reported.
Nov. 19, 2014, 3:39 PM
- French seismic surveyor CGG (CGG +24.3%) soars after Bloomberg reports it is weighing a sale of the company after being approached by Technip (OTCPK:TNHPF, OTCQX:TKPPY).
- CGG is said to have rejected an initial offer from Technip as too low, but talks are continuing.
- The French government, whose fund owns stakes in both CGG and Technip, reportedly is pushing for a combination of the companies.
Jan. 4, 2013, 8:28 AMHelix Energy (HLX) is turning into a takeover target after streamlining the company to focus on its expanding operations for offshore oilwell support, Bloomberg writes. Analysts say recent sales of its oil-and-gas unit and a pipe-laying business have made HLX more appealing to a potential suitor such as Aker Solutions, Technip or Diamond Offshore. | Jan. 4, 2013, 8:28 AM
May 21, 2012, 4:53 PM
Shaw Group (SHAW) +1.2% AH after agreeing to sell its energy and chemicals business to Technip (TKPPY.PK) for ~$300M. Shaw says the move will allow it to pursue opportunities in its primary industries, which include providing engineering and facilities management services to oil companies and electric utilities.| May 21, 2012, 4:53 PM