McDermott International to buy Chicago Bridge and Iron amid stabilising oil market

Chicago Bridge shares nudged up 0.56% in pre-market
McDermott International to buy Chicago Bridge and Iron amid stabilising oil market
Is the global oil market stabilising?

Offshore-focused engineering and construction giant McDermott International (NYSE:MDR) saw shares slip 1.32% in pre-market as it revealed it would buy onshore-based Chicago Bridge and Iron (NYSE:CBI) to create an integrated provider in a deal estimated to be worth about US$6bn.

The deal comes at a time of stabilisation in the global oil market.

Deal to be completed in second quarter 2018

Chicago Bridge shares nudged up 0.56% in pre-market.

"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," McDermott chief executive David Dickson was quoted as saying on a call.

The companies said Dickson will lead the new company, which will be based in Houston. The deal is expected to be completed in the second quarter next year.

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