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McDermott – CB&I Announce Merger

The deal is valued at an estimated $6-billion

David Dickson, president and CEO of McDermott.

Two Houston companies tied to oil and gas are joining forces. Houston based McDermott and Chicago Bridge & Iron, commonly referred to as CB&I have announced they are merging. 

McDermott is headquartered in Houston. CB&I is headquartered in the Netherlands, with its administrative headquarters in The Woodlands.

According to a company press release the deal is valued at an estimated $6-billion, and is expected to close in the second quarter of 2018. The all stock transaction is aimed at building the leading, onshore-offshore broad engineering, procurement, construction and installation company.

In the deal, CB&I shareholders will be entitled to receive 2.47221 shares of McDermott common stock for each share of CB&I common stock owned, if McDermott effects a planned three-to-one reverse stock split prior to closing, subject to any withholding taxes. When complete  McDermott shareholders will own approximately 53 percent of the combined company.

Current McDermott president and CEO David Dixon will hold the same position with the new company. The Board of Directors will be comprised of 11 members, including 10 independent directors and Dickson. Five of the independent directors will come from McDermott and five will come from CB&I. Gary P. Luquette, Non-Executive Chair of the McDermott Board, will serve as the combined company’s Non-Executive Chairman.

 

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