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US: McDermott, CB&I merger to create engineering behemoth

 |  December 19, 2017

Offshore-focused McDermott International said it would buy onshore-based Chicago Bridge and Iron to create an integrated construction and engineering services provider amid a stabilizing global oil market.

McDermott’s shares were down 9%, while CB&I rose 8% in after-market trading on Monday, December 18.

“Customers worldwide increasingly seek a single company that can offer end-to-end solutions, and the combination of McDermott and CB&I responds to these evolving customer needs,” McDermott Chief Executive David Dickson said on conference call.

McDermott on Monday offered 2.47221 of its shares for every CB&I share held, a 3% premium to the company’s closing price. The offer translates to an equity value of US$1.86 billion based on CB&I’s outstanding shares, according to Reuters calculations.

The estimated enterprise value of the all-stock transaction is about US$6 billion, based on McDermott’s Friday close, the companies said.

Full Content: Bloomberg

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