TechnipFMC has announced that it has resumed plans to split the business into two publicly traded companies, TechnipFMC and Technip Energies.

The company announced the separation plan last year, however the Covid-19 pandemic delayed the process.

TechnipFMC believes the separation would enhance both companies’ focus on their respective strategies and provide both improved flexibility and growth opportunities.

“We are very excited to announce the resumption of activities related to the separation and the creation of two industry-leading diversified pure-play companies poised to capitalize on the energy transition. The increased clarity we now have in the market outlook coupled with our demonstrated ability to successfully execute projects in this most challenging period give us confidence to move forward with the separation. We continue to believe this action would allow both businesses to thrive independently within their sectors, enabling each to unlock significant shareholder value,” said Doug Pferdehirt, chairman and CEO of TechnipFMC.

The Company intends to distribute 50.1 percent of the shares in Technip Energies to existing TechnipFMC shareholders on a pro rata basis. TechnipFMC will retain ownership of the remaining 49.9 percent of Technip Energies’ shares.

Bpifrance, a major shareholder of TechnipFMC, is committed to support the transaction and intends to invest $200m in Technip Energies by acquiring shares from TechnipFMC’s retained stake in Technip Energies. The transaction is expected to be completed in the first quarter of this year.