Impact of Covid-19: TechnipFMC puts on hold the plans to demerge the company as two independent, publicly traded firms

The reason is the new market conditions due to Covid-19

In March 2019, Borouge awarded TechnipFMC, Maire Tecnimont and WorleyParsons three major contracts for the fourth phase of the Ruwais petrochemicals complex, which will include the world’s largest mixed feed cracker. As seen in this file photo, the contracts were signed by Ahmed Omar Abdulla (sitting, centre), CEO, Borouge, Marco Villa (sitting, left), president EMIA, TechnipFMC, and Pierroberto Folgiero (sitting, right), group CEO, Maire Tecnimont, in the presence of Abdulaziz Alhajri (standing, right), executive director, Downstream Directorate, ADNOC, and Alfred Stern, chief executive, Borealis. (Image for illustration only)
In March 2019, Borouge awarded TechnipFMC, Maire Tecnimont and WorleyParsons three major contracts for the fourth phase of the Ruwais petrochemicals complex, which will include the world’s largest mixed feed cracker. As seen in this file photo, the contracts were signed by Ahmed Omar Abdulla (sitting, centre), CEO, Borouge, Marco Villa (sitting, left), president EMIA, TechnipFMC, and Pierroberto Folgiero (sitting, right), group CEO, Maire Tecnimont, in the presence of Abdulaziz Alhajri (standing, right), executive director, Downstream Directorate, ADNOC, and Alfred Stern, chief executive, Borealis. (Image for illustration only)

According an update issued by TechnipFMC on the company’s plans to separate as TechnipFMC and Technip Energies, the company has issued a media statement saying that the market conditions have changed materially due to the Covid-19 pandemic, the sharp decline in commodity prices, and the heightened volatility in global equity markets.

The impacts of these events have created a market environment that is not currently conducive to the company’s planned separation into TechnipFMC and Technip Energies.

The company reiterated that the strategic rationale for the separation remains unchanged, and the company is committed to the transaction, and continues its preparations to ensure that the two companies are ready for separation when the markets sufficiently recover.

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