McDermott International has completed a merger with Chicago Bridge & Iron Company (CB&I) to create an integrated provider of technology, engineering and construction solutions for the energy industry.
McDermott CEO David Dickson said: “The combination of McDermott and CB&I brings together a global upstream and subsea engineering, procurement and construction company with an established downstream provider of industry-leading petrochemical, refining, power, gasification and gas processing technologies and solutions, creating a company that spans the entire value chain from concept to commissioning.
“Together, we have the integrated technology, engineering expertise, construction experience and global reach to design and build the energy infrastructure of the future.”
As per the agreement, CB&I shareholders will secure 0.82407 shares of McDermott common stock for every share of CB&I common stock tendered in the exchange offer. This was approved by McDermott stockholders in a three-to-one reverse stock split resolution.
Any unsold CB&I common stock shares were converted into the right to receive 0.82407 shares of McDermott common stock, which will be paid in the exchange offer.
A cash payment will also be provided in return of any fractional shares of McDermott common stock.
Following the business combination, the CB&I common stock is no longer listed on the New York Stock Exchange. It stopped trading prior to opening the market on 11 May.
David Dickson is president and CEO of McDermott, while Gary P Luquette will continue as non-executive chairman of the board of directors.
