Acergy to buy Subsea 7 in oil and gas engineering deal
Norway's Acergy has announced an acquisition that will create a major new oil and gas engineering firm.
The company will buy out rival Subsea 7, creating a company of 12,000 employees and worth $5.4bn (£3.6bn).
Acergy built what was the world's longest underwater gas pipeline in 2006, connecting the UK to Norwegian North Sea gasfields.
Markets took the news well, with Acergy shares up 11% in early Monday trading, while its target Subsea 7 was up 12%.
The buyout on the Oslo stock exchange will be an all-share offer, meaning that Acergy will not need to raise any cash to complete the deal.
The companies expect the deal to result in cost savings of at least $100m per year.