Global energy services company TechnipFMC said a sharp decline in commodity prices and volatility in global equity markets brought on by the COVID-19 pandemic has impacted its planned separation into two different publicly traded companies.
The company said although the current market environment is not conducive to its planned separation, its rationale for the separation remains unchanged and it continues preparations to ensure that the two companies are ready for separation when the markets sufficiently recover.
Final transaction of the split had been expected in second quarter 2020.
First announced in August 2019, the split would make TechnipFMC (RemainCo) a fully integrated technology and services company, and Technip Energies (SpinCo) an engineering and construction company. RemainCo will be headquartered in Houston, but domiciled in the UK, while SpinCo will be based in Paris.