McDermott International Inc. and Chicago Bridge & Iron Co. which provide infrastructure and other products for the oil and gas industries, announced Monday afternoon that they plan to merge in an all-stock transaction.
The companies estimated the enterprise value of the transaction at $6 billion, with McDermott investors owning about 53% of the combined company and CB&I the other 47%, and expect annualized cost savings of about $250 million by 2019.
The merger will create one of the largest fully vertically integrated onshore-offshore company offering full engineering, procurement, construction and installation services. McDermott shareholders will own about 53 percent and CB&I shareholders will own about 47 percent of the new company in a deal valued at an estimated US$6 billion.
“The combined company will be a global leader with a complementary geographic portfolio and a strong presence in high-growth developing regions,” a spokesperson for CB&I said.
Headquartered in The Hague, the firm employs about 50,000 people worldwide and is involved in large-scale construction projects and breakbulk moves worldwide. McDermott is headquartered in Houston and has operations throughout the Americas, Middle East, the Caspian Sea and the Pacific Rim.
