McDermott keeping the name following CB&I merger

  • Business & Finance

Following the closing of pending merger between McDermott and CB&I, the combined company intends to retain the name McDermott. 

Announcing this decision on Monday, McDermott said that the combination remains subject to customary conditions, including approval by McDermott’s and CB&I’s stockholders and other closing conditions, but it is expected to close in May 2018.

“The name McDermott provides a strong foundation for the combined company and a platform on which we can build our future together,” said McDermott President and Chief Executive Officer David Dickson, who will continue to lead the combined company as revealed in March when the combined company’s organizational structure was also announced.

“We are known today as a company that delivers excellence in project execution in a cost-efficient delivery structure for the global energy industry. Together, McDermott and CB&I will have the integrated technology, engineering expertise, unmatched experience and global reach to design and build the energy infrastructure of the future.”

 

The Lummus brand 

 

McDermott also said that CB&I’s business that provides proprietary process technology licenses, associated engineering services, catalysts and engineered products will use the Lummus brand name.

McDermott noted that Lummus also offers process planning, project development services and a program of aftermarket support primarily for the petrochemical and refining industries. The Lummus business will be housed with the combined company’s leading edge initiatives, including McDermott’s “Digital Twin” software platform Gemini XDTM, under the umbrella of McDermott Technology.

CB&I’s tank business will also keep its current branding. CB&I has built in excess of 46,000 storage structures in more than 100 countries on all seven continents.

It is worth reminding that McDermott recently received an unsolicited, non-binding takeover proposal from Subsea 7, which McDermott rejected on the grounds that it undervalued the company and was not an attractive alternative to the proposed combination with CB&I.

All regulatory hurdles for McDermott-CB&I merger have already been cleared and shareholders from both companies will vote on the proposed merger on May 2.

While challenged by a company which owns nearly 2% of McDermott, the merger was backed by two proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis.

Offshore Energy Today Staff

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