McDermott International and CB&I have received the necessary stockholder approvals to complete the proposed business combination.
Following the approval of the combination of the two companies, Subsea 7, who made an offer to acquire McDermott, has withdrawn its proposal.
Subsea 7’s proposal was a subject to the termination of McDermott’s transaction with CB&I, which McDermott rejected stating that the proposal was not in the best interests of the company as it significantly undervalued McDermott and was not an attractive alternative to the proposed combination with CB&I.
As previously announced on December 18, 2017, McDermott and CB&I agreed to combine in an all-stock transaction to create a premier vertically integrated onshore-offshore company with an enterprise value of approximately $6 billion.
Upon the completion of the transaction, 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 of the combined company.
The transaction is expected to be completed on May 10, 2018, subject to confirmation of satisfaction of the closing conditions, McDermott noted.
The combined company will retain the name McDermott.