NASDAQ-LISTED ACERGY and Oslo-listed Subsea 7 are pursuing a merger deal that will see the creation of a combined entity with a combined market value of $5.4 bn.
p>NASDAQ-LISTED ACERGY and Oslo-listed Subsea 7 are pursuing a merger deal that will see the creation of a combined entity with a combined market value of $5.4 bn.
The proposed merger is based on an agreed 54:46 ratio between Acergy and Subsea 7, respectively.
Subsea 7’s shareholders will receive 1.065 Acergy common shares for every Subsea 7 common share held.
The merger will provide for at least $100 mn savings from reduced overhead and operating costs on the back of a more efficient supply chain management and the benefits of an enlarged global fleet, the two companies said in a joint statement.
The combined backlog of the merged entity stands at $5.3 bn as at 31 May 2010.
The two companies hired some 12,000 people worldwide.
The boards of directors of both companies have unanimously agreed to recommend the merger deal to their shareholders
The deal is expected to be completed by year-end or the first quarter of 2011, subject to shareholder approval, regulatory approvals and other customary completion conditions.
