Two large companies seek to achieve business goals with merger

On Behalf of Dunlap Fiore, LLC |

For Louisiana businesses of all sizes, benefit can be gained by considering mergers and acquisitions with other companies. There are multiple reasons to consider this option, but what is vital is to have all the important legal matters for such a decision organized. It does no good to have defined business goals if the attempted deal does not account for the inevitable regulatory issues. Having a law firm that is well-versed in all aspects of business in and out of the state is invaluable to getting things done and doing so in a timely fashion.

McDermott International, a company that specializes in engineering, construction and installation among other things is merging with a company that provides similar services, CB&I. In the merger, said to be worth $6 billion, an onshore and offshore company will be created. It will be based in Houston. The deal is an all-stock transaction.

Shareholders of McDermott will own approximately 53 percent of the new company. CB&I shareholders will own the remaining 47 percent or thereabouts. This deal comes on the heels of a July sale in which CB&I sold Capital Services to a New York company for $755 million. In combination, the two companies will have an estimated $10 billion in revenue and work backlogged for around $14.5 billion. This deal is expected to be completed sometime in 2018.

With businesses of such large scope pursuing a merger, there are an innumerable number of factors that must be considered. Since large mergers are often under regulatory scrutiny from government agencies, being organized and aboveboard is paramount. Having legal assistance from a law firm that has worked with businesses and companies small and large is crucial. For companies that are seeking to expand by acquiring another company or are trying to merge, a law firm that is experienced in business matters can be of assistance from the start.

Source:, “McDermott International, CB&I merging in $6 billion deal,” Dec. 18, 2017