Shares of oil and gas services provider TechnipFMC (FTI) - Get Report were rising nearly 5% Monday after the company announced it was splitting the company into two independent, publicly traded companies.
One company will be a fully-integrated technology and services provider in the energy space, while the other will be an engineering and construction play that the company said will "capitalize on the global energy transition."
The separation, which is expected to conclude in the first half of 2020, comes just three years after Technip S.A. merged with FMC Technologies in 2017.
"To further enhance value creation, our Board of Directors and management team have continuously evaluated strategic options and, after a comprehensive review, determined that it is in the best interest of TechnipFMC and all of our stakeholders to create two diversified pure-play leaders," said TechnipFMC CEO Doug Pferdehirt.
The engineering and construction spinoff will have about 15,000 employees and will be led by current TechnipFMC president of new ventures, Catherine MacGregor. Meanwhile, the technology and service provider company will have about 22,000 employees and be led by Pferdehirt as CEO and current TechnipFMC Chief Financial Officer Maryann Mannen.
TechnipFMC shares were rising 4.74% to $24.19 Monday afternoon.
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