CB&I’s administrative headquarters in the US. Photo: courtesy of WhisperToMe/Wikipedia.
McDermott International shareholders have approved the company’s merger with Chicago Bridge & Iron Company (CB&I), preventing Subsea 7 from blocking the deal.
In April, Subsea 7 confirmed that it had made an unsolicited bid to acquire its rival US-based offshore oil services company McDermott for around $2bn.
Subsea 7 made the offer when McDermott was in the middle of finalizing a $6bn merger deal with CB&I.
However, the offer from the UK-based firm was rejected by McDermott.
McDermott said: “With the receipt of these approvals, McDermott and CB&I believe that all material conditions to the combination, other than those to be satisfied on the closing date, have been satisfied.”
Subsea 7 has announced that it has taken note of McDermott shareholders’ vote in favour of a combination with CB&I.
The company said in a statement: “In light of this vote, Subsea 7 confirms that the proposal made to McDermott’s Board of Directors on April 17 and published on April 23 is no longer valid.”
In last December, McDermott and CB&I entered into an all-stock merger deal, aiming to establish a fully vertically integrated onshore-offshore company.
Under the terms of the deal, shareholders of McDermott will own around 53% of the combined company while the CB&I shareholders will own about 47%.
The combined company is expected to offer a range of engineering, procurement, construction and installation (EPCI) services.
The new entity integrates McDermott’s presence in the Middle East and Asia with CB&I’s operations in the US. It will have a presence across onshore and offshore, upstream, downstream and power markets.
Following the completion of the merger, operations of the combined company will be divided into four areas that include North, Central & South America (NCSA), Europe, Africa, Russia & Caspian (EARC), Middle East & North Africa (MENA) and Asia Pacific (APAC).
The transaction is expected to be closed on 10 May 2018, subject to confirmation of satisfaction of the closing conditions.