McDermott International Inc (NYSE:MDR) and CB&I reported that the Federal Trade Commission has given early closure of the Hart-Scott-Rodino waiting period, with respect to their intended combination. As earlier reported on December 18, 2017, CB&I and McDermott have agreed to follow an all-stock deal to create a leading fully vertically integrated offshore-onshore firm with an enterprise value of around $6 billion.
As per the terms of the intended combination, upon closuren, McDermott stockholders will have approximately 53% of the combined firm on a fully diluted basis while CB&I shareholders will have approximately 47%. The transaction remains subject to regulatory approval in Russia, approval by CB&I’s and McDermott’s shareholders, closure of financing and other closing requirements.
In unrelated news, McDermott International reported a major contract award from Saudi Aramco for the procurement, construction, installation and engineering of 13 jackets in the Marjan, Berri, Zuluf and Abu Safah fields. Since 2001, the company has installed and built more than 121 jackets for Saudi Aramco with an aggregate weight of more than 220,462 tons.
McDermott has experience of more than 50 years in these fields. This marks as the fourth fast-track assignment to be given by Saudi Aramco in the previous 24 months. The combined weight of the structures is around 26,455 short tons.
Linh Austin, the VP, Middle East and Caspian at McDermott, expressed that this award is proof to Saudi Aramco’s confidence in company’s ability to follow fast-track projects on plan and to the best standards of delivery. Since 2001, the company has installed and built more than 121 jackets for Saudi Aramco with an aggregate weight of more than 220,462 tons. Not only can McDermott meet the schedules of fast-track assignment, but can consistently complete them with remarkable safety performance. The deal award will be reflected in company’s Q1 2018 backlog.