McDermott International Inc (NYSE:MDR) and CB&I (CBI) have announced that they have received an antitrust clearance in Russia for its proposed combination. This therefore means that they have received all the required approval for the transaction from the competition authority.
Off-shore projects
Having announced in December 2017, McDermott and CB&I made an agreement to combine an all-stock transaction to create a vertically integrated onshore and offshore company attached with an approximately $6 billion value. The proposed combination upon completion, it is estimated McDermott shareholders will own about 53% of the combined company while the CB&I shareholders will own about 47% of the combined company.
By the end of the 2nd quarter, the partnership is expected to be complete. McDermott and CB&I completion of the closing conditions and financing however remains subject to approval by stockholders.
CBI is a leading technology and infrastructure provider in the energy industry. With over 125 years of experience, the company provides reliable solutions to its customers around the globe while maintaining reliable quality standards and key focus on safety. McDermott is a leading provider of integrated engineering, constructions, procurement and installations and module fabrications services for the upstream field development globally.
CBI and McDermott have also announced the selection of executive leadership team and integrated organizational structure of their newly formed company that is slated to be effective upon completion of the transaction.
Baker Hughes partners McDermott
Baker Hughes (NYSE:BHI) and the oilfield service providers McDermott International are set to team up to provide a cohesive energy service for BP plc (ADR)(NYSE:BP) west African gas project; offshores of Mauritania and Senegal. The two companies according to their contract shall be required to conduct a front end engineering design studies for BP’s gas field development.
Upon completion of their initial project, the partnership agreement between McDermott and Baker Hughes will permit both companies to offer an optimized and integrated solutions for BP’s project. The partnerships strategically place McDermott and Baker Hughes in a better point to compete with other industry leaders like Schlumberger Ltd and Technip FMC.
Techniq and FMC technologies however completed their merger early last year, which has resulted to a substantial savings for a combined entity in the event offering a coherent offshore project solutions.
