McDermott, Chicago Bridge & Iron Shareholders Approve Merger

McDermott International shareholders on May 2 approved a merger with Chicago Bridge & Iron Co. (CB&I) that creates a vertically integrated onshore and offshore engineering and construction company, thwarting an attempt by offshore drilling contractor Subsea 7 to block the deal.

More than 50% of McDermott shareholders supported the deal and approved a 3-to-1 reverse stock split, according to a spokesman. CB&I shareholders also voted in favor the merger, the companies said, and the combination is expected to close on May 10.

Shares of CB&I were up about 6%, trading at around $16.67, while McDermott shares were up a penny at $6.77.

Oslo, Norway-based Subsea 7 in April had made a $2 billion bid for offshore engineering and construction company McDermott to break up its planned merger with onshore engineering firm CB&I.