Two major international oil services companies have agreed to merge in a deal that will create a new company worth $13bn.

Technip of France and US-based FMC Technologies announced on Thursday they had agreed to merge, with the shareholders of each company taking half of the ownership of the new company, which will be called TechnipFMC.

The all-stock deal would create a company worth $13bn based on the most recent closing prices.

Doug Pferdehirt, president of FMC, will become the new company’s chief
executive. He said:

This transaction will allow us to deliver even greater benefits to our customers through a broadened portfolio that provides a unique set of integrated technologies and competencies that are underpinned by a history of developing rich partnerships and
creating customer success.

Services companies have been some of the hardest hit by the fall in the oil price, with big oil companies suddenly cancelling or renegotiating contracts as they try to cut costs.