Offshore-focused engineering and construction giant McDermott International (NYSE:MDR) saw shares slip 1.32% in pre-market as it revealed it would buy onshore-based Chicago Bridge and Iron (NYSE:CBI) to create an integrated provider in a deal estimated to be worth about US$6bn.
The deal comes at a time of stabilisation in the global oil market.
Deal to be completed in second quarter 2018
Chicago Bridge shares nudged up 0.56% in pre-market.
"Customers worldwide increasingly seek a single company that can offer end-to-end solutions, and the combination of McDermott and CB&I responds to these evolving customer needs," McDermott chief executive David Dickson was quoted as saying on a call.
The companies said Dickson will lead the new company, which will be based in Houston. The deal is expected to be completed in the second quarter next year.