Engineering, procurement, construction and installation (EPCI) services company McDermott International has secured an approval from the US Federal Trade Commission (FTC) for its previously announced $6bn merger with CB&I.
FTC granted an early termination of the waiting period under the 1976 Hart-Scott-Rodino Antitrust Improvements Act, regarding the proposed combination.
Last month, the companies reached a merger agreement to create a fully vertical integrated onshore-offshore company.
Upon completion of the deal, McDermott stockholders will own 53% of the combined entity on a fully diluted basis, while the remaining 47% will be held by CB&I shareholders.
At the time of signing the agreement, McDermott International president and CEO David Dickson said: “Customers worldwide increasingly seek a single company that can offer end-to-end solutions, and the combination of McDermott and CB&I responds to these evolving customer needs by creating a leading vertically integrated company.
“This transaction combines two highly complementary businesses to create a leading onshore-offshore EPCI company driven by technology and innovation, with the scale and diversification to better capitalise on global growth opportunities.”
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By GlobalDataThe merger is conditional upon regulatory clearance in Russia, approval by McDermott’s and CB&I’s shareholders, as well as completion of financing and other closing conditions.
Through the transaction, McDermott intends to create annualised cost synergies of $250m next year.