Subsea 7 reaffirms interest in McDermott takeover

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UK-based Subsea 7 has restated its interest in acquiring U.S rival McDermott.

The oil services giant earlier this week made a £1.4billion hostile takeover bid for the company, which was rejected.

Subsea 7 has today said it is open “amending its proposal” if it can find additional value through talks with McDermott’s management team.

The proposal is subject to the termination of McDermott’s pending merger deal with CB&I.

Jean Cahuzac, Subsea 7’s CEO said: “A combination with McDermott is supported by compelling industrial logic.

“We would welcome the opportunity to engage with McDermott’s Board of Directors and management to discuss our proposal and the substantial upside opportunity represented by ongoing participation in the equity, with a view to achieving a combination that would be in the best interests of our respective shareholders.”

Following the takeover bid earlier this week, analysts Rystad Energy stated that a merger between the two firms would see Subsea 7 “take the throne” for the subsea, umbilicals, risers and flowlines (SURF) market.

Rystad says it would have the largest share of the global market at 24%, followed by nearest rivals TechnipFMC at 20%.