Shareholder meetings on December 5
On December 5, Technip S.A. and FMC Technologies (FTI) held shareholder meetings to vote on the pending merger between the two companies. Both companies’ shareholders approved the business merger. Now, the proposed merger requires certain regulatory approvals to go through.
On May 19, 2016, Technip S.A. and FMC Technologies agreed to combine in an all-stock merger transaction. FMC Technologies is a Texas-based OFS (oilfield service and equipment) company. Technip is a France-based OFS giant that operates in the offshore and onshore energy service business. Read about the deal in detail in Market Realist’s FMC Technologies and Technip to Form Energy Services Giant. FMC Technologies accounts for 0.04% of the SPDR S&P 500 ETF (SPY).
Here’s a timeline of the key events leading up to the latest merger:
- May 19 – FMC Technologies and Technip announced a business combination proposal.
- June 27 – The companies announced that the US antitrust review was complete.
- November 23 – FMC Technologies and Technip received approval from the European antitrust authority.
- November 24 – They announced their respective designees to the combined company’s board of directors. Each company will designate seven directors—effective after the merger.
- December 1 – FMC Technologies and Technip received antitrust clearance from the Brazilian antitrust authority. According to FMC Technologies’ management, it was the last antitrust approval required before the deal closes. So far, FMC Technologies received antitrust approvals from authorities in the US, the European Union, India, Turkey, Mexico, and Russia.
- December 5 – Shareholders voted and approved the transaction.
How active is the OFS space?
Recently, the OFS industry has been buzzing with mergers and acquisition activities. On November 30, Baker Hughes (BHI), CSL Capital Management, and West Street Energy Partners disclosed that they agreed to form a land-based pressure pumping company. Read Baker Hughes Makes Another Deal: An OFS Newco Explained to learn more about the deal.
Next, we’ll discuss how the market has responded since the Technip-FMC Technologies deal was announced.