May 20 2016, 09:19 PM
QUOTE(ZZMsia @ May 20 2016, 12:12 PM)
More people will be retrenched..
Two of the world's leading providers of services to the offshore oil industry are merging and selecting the UK as the combined company’s domicile, following the trend of groups in the sector relocating to Britain to benefit from favourable tax treatment.
FMC Technologies of the US and Technip of France have agreed a merger of equals to create the world's second-largest listed oil services group by revenues, with a market capitalisation of about $13bn.
Oil services companies have been hit hard by the decline in crude prices since mid-2014, as exploration and production groups renegotiate or even cancel contracts with their suppliers in efforts to cut costs. Several oil services groups have pursued consolidation deals to try to better withstand the downturn.
The combined company, to be called TechnipFMC, will be dual listed in Paris and New York, but domiciled in the UK, and have operational headquarters in Paris, Houston and London.
Executives and advisers of the two companies declined to say whether the merged company would pay less tax as a result of the relocation to the UK. But one person close to the deal said that it would generate tax benefits for FMC, which is incorporated in the US.
Other oil services companies including Ensco and Noble Corp, the offshore drilling contractors, have relocated to the UK to benefit from its favourable tax treatment.
I wonder what would happen to those in Technip Malaysia ?Two of the world's leading providers of services to the offshore oil industry are merging and selecting the UK as the combined company’s domicile, following the trend of groups in the sector relocating to Britain to benefit from favourable tax treatment.
FMC Technologies of the US and Technip of France have agreed a merger of equals to create the world's second-largest listed oil services group by revenues, with a market capitalisation of about $13bn.
Oil services companies have been hit hard by the decline in crude prices since mid-2014, as exploration and production groups renegotiate or even cancel contracts with their suppliers in efforts to cut costs. Several oil services groups have pursued consolidation deals to try to better withstand the downturn.
The combined company, to be called TechnipFMC, will be dual listed in Paris and New York, but domiciled in the UK, and have operational headquarters in Paris, Houston and London.
Executives and advisers of the two companies declined to say whether the merged company would pay less tax as a result of the relocation to the UK. But one person close to the deal said that it would generate tax benefits for FMC, which is incorporated in the US.
Other oil services companies including Ensco and Noble Corp, the offshore drilling contractors, have relocated to the UK to benefit from its favourable tax treatment.
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