France’s Technip acquires US rival in US$1bn deal

Technip has expanded its growing subsea pipeline business with the acquisition of US rival Global Industries.

Analysts said the acquisition would almost double the size of the company’s fleet of ships. It also strengthens Technip’s strategically-important subsea division, which has higher profit margins than its offshore platform and onshore units.

The purchase also underlines the increasing confidence of the French firm as one of the largest suppliers to the oil and gas industries. In five years, its shares have risen by 50% while the Paris CAC fell by about the same amount.

The US$1.1bn cash and debt purchase follows General Electric’s US$1.3bn buy of the UK’s Wellstream, one of Technip’s key competitors in flexible pipelines used in the oil and gas industry to connect oil and gas wells with floating or onshore facilities.

Fonte: Site Industrial fuels and power