McDermott International Inc. confirmed that it had rejected an unsolicited buyout bid by Norway-based Subsea 7 S.A., adding that it remains “fully committed” to completing the deal to buy Chicago Bridge & Iron as planned.
The engineering and construction company for the energy industry confirmed that Subsea’s buyout bid of $7 a share, which was 15.7% above Friday’s closing price of $6.05, was subject to the termination of the CB&I merger deal. McDermott said after it “carefully reviewed and considered” the Subsea 7 bid, it still believes the CB&I deal, which is expected to close in May 2018, is in the best interest of McDermott shareholders.
McDermott’s stock ran up 18.2% in premarket trade, while CB&I shares tumbled 13.6%. Over the past three months, McDermott’s stock has plunged 23.0% while the S&P 500 has lost 6.0%.
By Tomi Kilgore
ExxonMobil Corp. (Spring, Tex.) announced the startup of two new chemical production units at its Baytown, Texas, manufacturing facility. The $2 billion expansion is part of ExxonMobil’s long-term growth plans to deliver higher-value products from its U.S. Gulf Coast refining and chemical facilities.
Ineos Enterprises has announced the acquisition of Eramet Titanium & Iron (ETI) from Eramet for €230 million ($245 million). The deal was completed on Sept. 21 and takes immediate effect, following the satisfaction of regulatory approvals.
Arxada has appointed Sanjeev Rastogi as Chief Executive Officer (CEO), effective immediately. He succeeds Marc Doyle who led Arxada since its foundation and will join the company’s board of directors as a non-executive member.