McDermott completes $6bn CB&I acquisition, eyes Middle East expansion with Saudi Aramco
American offshore engineering giant McDermott has completed the acquisition of Chicago Bridge & Iron Company (CB&I), a move which has created a fully integrated provider of tech, engineering and construction services for energy clients.
The deal is said to be worth $6bn including debt, will open up business opportunities in key markets such as the US and Middle East.
McDermott now has a workforce of more than 40,000, including 5,000 engineers, serving markets in 54 countries.
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David Dickson, President and Chief Executive Officer, commented: “The combination of McDermott and CB&I brings together a global upstream and subsea engineering, procurement and construction company with an established downstream provider of industry-leading petrochemical, refining, power, gasification and gas processing technologies and solutions – creating a company that spans the entire value chain from concept to commissioning.
“Together, we have the integrated technology, engineering expertise, construction experience and global reach to design and build the energy infrastructure of the future.”
According to Reuters, McDermott will expand its work in Saudi Arabia after Dickson met with Saudi Aramco executives.
While current work with Aramco is focussed on offshore, upstream projects, the addition of CB&I expertise opens up the possibility of further business.
The acquisition will also lead to a reorganisation of McDermott by territory – North, Central and South America; Europe, Africa, Russia ad Caspian; Middle East and North Africa; and Asia Pacific. Each of these areas will be supported by executive presence.
At present, McDermott’s innovation portfolio includes more than 100 licensed proprietary technologies, bolstered by more than 3,500 patents and patent applications.