McDermott International has stated it remains “fully committed” to its merger with CB&I following Subsea 7’s rejected takeover bid.
The US oilfield services firm rejected a £1.4billion takeover move earlier this week, today restating it is “unsolicited and non-binding”.
A condition of UK-based Subsea 7’s proposal is the termination of McDermott’s merger with Chicago Bridge & Iron (CB&I).
In a statement, McDermott said: “McDermott is fully committed to completing the transformational combination with CB&I. The Company’s Board believes the combination with CB&I is in the best interest of McDermott and its stockholders, and has recommended that McDermott stockholders support the transaction.
“The combination is expected to close in May 2018. It remains subject to customary conditions, including approval by McDermott’s and CB&I’s stockholders and other closing conditions.”
The firm also urged stockgolders to vote for the proposals relating to the CB&I merger during a special meeting on May 2.
Subsea 7 said earlier today that it would be open to “amending its proposal” if it can find additional value through talks with McDermott’s management team.
According to analysts Rystad Energy, a merged Subsea 7-McDermott would create a giant of the global subsea umblicals, risers and flowlines (SURF) market holding 24%.