Shareholders in offshore oil services firm McDermott have approved a proposed merger with engineering firm Chicago Bridge and Iron (CB&I), effectively killing a hostile takeover by Norwegian rival Subsea 7 made last week.
Houston-based McDermott International and CB&I announced Wednesday that both companies have received the necessary stockholder approval to complete the combination.
Upon closing of the transaction, McDermott stockholders will own approximately 53 percent of the combined company, while CB&I shareholders will own the remaining 47 percent.
Subsea 7 S.A. subsequently withdrew an unsolicited proposal it made last week to acquire McDermott at $7 per share, valuing the transaction at around $2 billion. Subsea 7 said its proposal was subject to the termination of McDermott’s $1.9 billion deal with CB&I.
McDermott and CB&I voted on the combination on Wednesday.
McDermott stockholders agreed to a 3-to-1 reverse stock split resolution, where as CB&I shareholders will receive 0.82407 shares of McDermott common stock for each share of CB&I common stock tendered in the exchange offer.
The combination of the two companies is expected to be completed on May 10, 2018, subject to certain conditions.
In announcing its withdrawal of its offer, Subsea 7 said it will continue to invest in alternative routes to grow and strengthen its business worldwide, with “a focus on differentiation through its market-leading capabilities and enabling technology.”