Thursday evening saw a sharp increase in MRC Global Inc. (NYSE: MRC) shares following the company’s announcement of a significant merger development. The after-market session saw the stock rise 5.78% to $14.09, adding to its regular session gain of 2.70% to end the day at $13.32.
This spike comes after a definitive merger deal with DNOW Inc. was announced, indicating the establishment of a major participant in the worldwide market for industrial and energy solutions.
Using a Strategic All-Stock Purchase to Combine Advantages
The deal states that DNOW would buy MRC Global in an all-stock deal for around $1.5 billion, which will include MRC Global’s net debt. By combining two complementary international infrastructure providers, the merger will result in a single company with more than 350 service and distribution facilities spread over more than 20 nations.
For every MRC share, MRC Global shareholders will receive 0.9489 shares of DNOW stock, representing an 8.5% premium over MRC’s August 25, 2025, 30-day volume-weighted average price of $12.77.
Increased Capabilities and a Wide Range of Products
An estimated $3.0 billion in enterprise value will be created by the combination, of which about 56.5% of the merged company will be owned by DNOW shareholders and 43.5% by MRC Global shareholders. The merged company will provide a broad variety of services, including upstream, midstream, downstream, gas utility, and industrial solutions, while maintaining core expertise in energy, electrification, AI infrastructure, and mining.
Continuing Branding, and Operational Synergies
Within three years, it is anticipated that the deal would provide $70 million in cost savings annually due to improvements in supply chains, IT systems, and corporate operations. Additionally, in the first year after closure, it is anticipated to generate double-digit adjusted EPS accretion.
While keeping the MRC Global brand identification, the new company will continue to operate under the DNOW moniker and NYSE symbol. In order to promote long-term development, resilience, and customer involvement, the company will continue to have its headquarters in Houston, Texas, and employ about 5,000 people worldwide.
