US antitrust regulators have given clearance for the $13bn merger transaction between FMC Technologies and Technip.
The conclusion of antitrust review in the US under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 satisfies a closing condition of the pending deal.
The transaction is further subject to other closing conditions, including approval of Technip and FMC shareholders, the conclusion of antitrust review in other countries, other regulatory approvals and consents.
Last month, US-based FMC and French oil services company Technip signed a memorandum of understanding to create a new company named TechnipFMC.
Combination of Technip and FMC will build on the Forsys Subsea joint venture, which was formed between them last year and is expected to deliver at least $400m in annual pretax cost synergies.
Earlier FMC Technologies president and chief operating officer Doug Pferdehirt said: "This transaction will allow us to deliver even greater benefits to our customers through a broadened portfolio that provides a unique set of integrated technologies and competencies that are underpinned by a history of developing rich partnerships and creating customer success."
Combining Technip’s systems and solutions with FMC’s capabilities, TechnipFMC will engage with customers earlier in the development process to design, deliver, as well as install comprehensive solutions.
The new company will also offer solutions in subsea, surface and onshore/offshore to reduce the cost of producing and transforming hydrocarbons.
Its flexible commercial model will provide both integrated and discrete solutions to customers across the value chain.
Together, Technip and FMC reported consolidated backlog of about $20bn as of 31 March this year.
The transaction is expected to complete early next year.
Image: TechnipFMC will offer solutions in subsea, surface and onshore/offshore. Photo: courtesy of suwatpo/FreeDigitalPhotos.net.