Subsea 7 deal dead as McDermott shareholders vote for CB&I merger

Kristian Siem’s Subsea 7 has withdrawn its takeover offer for McDermott International after the US offshore services company’s shareholders voted to support a $6bn combination with CB&I.

A key requirement of the Subsea 7 offer was for McDermott not to merge with CB&I, and so the vote effectively killed off any chance of the unsolicited takeover happening.

“Subsea 7 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,” Subsea 7 said in a statement.

The transaction between McDermott and CB&I is now expected to be competed by May 10, giving McDermott a 53% stake in the new enlarged entity.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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