US: FMC and Technip get antitrust clearance

Services giants Technip and FMC Technologies have received speedy clearance from US antitrust authorities for their proposed $13 billion merger.

The French engineering giant and Houston-based FMC were given the all-clear under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, they said on Monday.

The companies must, however, overcome antitrust reviews in other countries, we well as shareholder approval, other regulatory consents and additional customary closing conditions. The deal is set to close early next year.

FMC and Technip signed a memorandum of understanding in mid-May to merge in an all-stock transaction, with each company’s shareholders to own close to 50% of the combined entity that will be named TechnipFMC.

The fusion, which would build on their existing joint venture Forsys Subsea, will enable the companies to achieve pre-tax cost synergies of about $200 million in 2018 and at least $400 million annually from 2019 onwards, they said last month.

Implementation costs of the merger are estimated at $250 million.

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