Technip and FMC Technologies have executed a business combination agreement (BCA) regarding their proposed merger announced earlier this year.

The execution of the BCA follows conclusion of the required work council consultation process in Europe.

“With the signing of the BCA, we have reached an important milestone paving the way to building a unique offering, driving change by redefining the production and transformation in the oil and gas industry,” said Thierry Pilenko, Technip chairman and chief executive officer, who will serve as executive chairman of the combined company, TechnipFMC.

Doug Pferdehirt, president and chief operating officer of FMC Technologies, who will serve as the CEO of TechnipFMC, added, “The combination of FMC Technologies and Technip is an exciting opportunity for both companies to shape the future of the oil and gas industry by accelerating technology innovation, integrating and improving project execution and reducing costs for customers. Having concluded the consultation process so quickly is a testament to the logic and strategic rationale of this merger.”

The transaction is expected to close in early 2017, subject to the approvals of Technip and FMC Technologies shareholders, regulatory approvals and consents, as well as other customary closing conditions.