TechnipFMC says it has resumed activities related to the previous announced separation of the company into two separate pure-play businesses, TechnipFMC and Technip Energies. The company suspended the separation process in March 2020 because of changed market conditions due to the COVID-19 pandemic, saying it would resume once markets had recovered.
“The increased clarity we now have in the market outlook, coupled with our demonstrated ability to successfully execute projects in this most challenging period, give us confidence to move forward with the separation. We continue to believe this action would allow both businesses to thrive independently within their sectors, enabling each to unlock significant shareholder value,” says TechnipFMC CEO Doug Pferdehirt.
The transaction is expected to be structured as a spin-off of a 50.1% stake in TechnipFMC’s Technip Energies segment, with TechnipFMC to retain ownership of the remaining 49.9% in outstanding Technip Energies shares. The separation is expected to be completed in the first quarter of 2021, subject to customary conditions and regulatory approvals, says TechnipFMC. It intends to conduct “an orderly sale” of its remaining stake in Technip Energies over time, it says.
Technip Energies will be a leading engineering and technology player headquartered in Paris, France, while TechnipFMC will be a “fully integrated technology and services provider,” with headquarters in Houston, Texas, it says.
Both businesses are expected to be “appropriately capitalized with sufficient cash to support anticipated operating and investment plans,” with a pro forma estimated cash position of $4.6 billion at the time of separation, according to TechnipFMC.
Existing TechnipFMC shareholder Bpifrance is committed to supporting the transaction and intends to invest $200 million in Technip Energies by acquiring shares from TechnipFMC’s retained stake to become a long-term reference shareholder in Technip Energies, TechnipFMC says.
Technip Energies would be one of the world’s largest engineering and technology companies with “leadership positions in liquefied natural gas [LNG], hydrogen, and ethylene, as well as growing market positions in sustainable chemistry and CO2 management,” it says. Arnaud Pieton, currently president at Technip Energies, will be appointed as its CEO.
TechnipFMC first announced the planned demerger of the company in August 2019.
by Mark Thomas
Sidel has remotely assisted Nouvelle Brasserie de Guinée (Braguinée) with the tuning of a 1 L bottle line in Guinea. Braguinée is expanding its carbonated soft drink large format production to meet the growing demand for home consumption
Dutch PPE Solutions, a joint venture of VDL Groep and Royal DSM, has been able to produce carbon neutral meltblown fabric. Bornewables PP is made from bio-based feedstock derived entirely from waste and residue streams and has ISCC PLUS certification. Borealis is providing Dutch PPE Solutions with renewable PP from its , supporting them in reducing the climate impact of meltblown production.
The Supervisory Board of Covestro AG has prematurely extended the contract of Board of Management member Sucheta Govil, which runs until July 2022, by three years from August 1, 2022, to July 31, 2025. Govil has been a member of the Management Board of Covestro since August 2019.