McDermott-CB&I merger clears all antitrust hurdles

McDermott and CB&I have received antitrust clearance in Russia for their proposed combination. With this clearance, McDermott and CB&I have received all the required competition authority approvals for the transaction.

McDermott and CB&I agreed to combine in an all-stock transaction in December 2017 to create a premier vertically integrated onshore-offshore company with an enterprise value of approximately $6 billion.

The proposed merger cleared an antitrust hurdle in the U.S. with early termination of Hart-Scott-Rodino (HSR) waiting period in January.

Under the terms of the proposed combination, upon completion, it is estimated that McDermott stockholders will own approximately 53 percent of the combined company on a fully diluted basis and CB&I shareholders will own approximately 47 percent.

The combination is expected to be completed in the second quarter of 2018. It remains subject to approval by McDermott’s and CB&I’s shareholders, completion of financing and other closing conditions.

Earlier in March, the two companies selected the executive leadership team and integrated organizational structure of the combined company, which will be effective upon the close of the transaction.

It is worth mentioning that David Dickson, currently serving as President & Chief Executive Officer for McDermott, will continue in that role for the combined company.

Offshore Energy Today Staff