Kristian Siem's offshore company Subsea 7 gives up its attempts to acquire McDermott, says the company in a stock exchange notice.
On April 17 the Norwegian company submitted an offer to buy all shares in McDermott at a price of USD 7 per share, corresponding to around USD 1.9 billion. This offer was rejected a week later by McDermott's management, which opted to instead proceed with its existing plans to merge with similarly US-based Chicago Bridge & Iron (CB&I).
Subsea 7 made a new attempt on April 25, stating that the company was "open to considering amending its proposal." But this approach did not alter McDermott's stance, whose board of directors agreed to reject the Norwegian offer. Instead, a majority McDermott's shareholders on Wednesday voted in favor of the merger with CB&I in a transaction that values the company at USD 6 billion.
This vote made Subsea 7 call off its acquisition efforts.
"In light of this vote, Subsea 7 confirms that the proposal made to McDermott's Board of Directors on April 17 and published on April 23 is no longer valid," writes Subsea 7.
"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."
English Edit: Daniel Logan Berg-Munch