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McDermott and Chicago Bridge & Iron to combine in transaction valued at $6 billion

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Staff Writer | December 19, 2017
McDermott International and Chicago Bridge & Iron Company (CB&I) announced that the companies have agreed to combine in an all-stock transaction.
Chicago Bridge & Iron
Merger   The business combination agreement
Upon completion of the transaction, McDermott shareholders will own approximately 53 percent of the combined company on a fully diluted basis and CB&I shareholders will own approximately 47 percent.

Under the terms of the business combination agreement (BCA), CB&I shareholders will be entitled to receive 2.47221 shares of McDermott common stock for each share of CB&I common stock owned (or 0.82407 shares if McDermott effects a planned three-to-one reverse stock split prior to closing), subject to any withholding taxes.

The estimated enterprise value of the transaction is approximately $6 billion, based on the closing share price of McDermott on December 15, 2017.