Franco-American oil services firm TechnipFMC Plc said on Jan. 7 it resumed its plan to split itself into two after delaying the move early last year.

The group, created nearly four years ago via the merger of Technip and FMC, had been planning to separate its engineering and construction activities from its upstream oil services business.

However, it put the plan on hold, citing turbulence in financial markets due to the coronavirus outbreak. It said in March 2020 that the rationale for the spinoff remained unchanged and that it would continue preparations in order to be ready to go ahead with the move once markets recover.

“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,” Doug Pferdehirt, chairman and CEO of TechnipFMC, said in a statement in a Jan. 7 company release. “We continue to believe this action would allow both businesses to thrive independently within their sectors, enabling each to unlock significant shareholder value.”

In the Jan. 7 release, TechnipFMC  said the planned separation will create two industry-leading, independent, publicly traded companies:

  • TechnipFMC, a fully integrated technology and services provider; and
  • Technip Energies, a leading engineering and technology player. 

The transaction is expected to be structured as a spin-off of a majority stake in TechnipFMC’s Technip Energies segment and completed in the first quarter.

In support of the transaction, Bpifrance, which has been a substantial shareholder of TechnipFMC since 2009, intends to invest $200 million in Technip Energies by acquiring shares from TechnipFMC’s retained stake in Technip Energies. As a result, Bpifrance will become a long-term reference shareholder of Technip Energies, supporting its energy transition-focused strategy.

Shares received by Bpifrance for the new investment would be in addition to those it will receive as a current shareholder of TechnipFMC.

TechnipFMC will remain incorporated in the U.K. with headquarters in Houston and listings on both the NYSE and Euronext Paris.

Pferdehirt will continue to serve as chairman and CEO of TechnipFMC following the separation. Maryann Mannen will also retain her current role as executive vice president and CFO of TechnipFMC.

Technip Energies will be led by Arnaud Pieton as CEO, Bruno Vibert as CFO and Marco Villa as COO. The company will be incorporated in the Netherlands with its headquarters in Paris. Technip Energies’ listing will be on Euronext Paris, with Level 1 ADRs that will trade over-the-counter in the U.S. 

Rothschild & Co. is financial adviser and Latham & Watkins LLP is acting as a legal adviser to the company. Darrois Villey Maillot Brochier and De Brauw Blackstone Westbroek NV are serving as additional legal advisers.

Reuters contributed to this article.

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