MRC Global stock surges after DNOW announces $1.5 billion acquisition

Investing.com -- MRC Global Inc (NYSE:MRC) stock surged 14% on Thursday while DNOW Inc (NYSE:DNOW) shares fell 1.9% after the companies announced a definitive merger agreement.

DNOW will acquire MRC Global in an all-stock transaction valued at approximately $1.5 billion, including MRC Global’s net debt. The deal will create what the companies describe as a "premier energy and industrial solutions provider" with a global footprint spanning more than 350 service and distribution locations across over 20 countries.

Under the terms of the agreement, MRC Global shareholders will receive 0.9489 shares of DNOW common stock for each MRC Global share, representing an 8.5% premium to MRC Global’s 30-day volume weighted average price of $12.77 as of June 25, 2025. Following the transaction, DNOW shareholders will own approximately 56.5% of the combined company, while MRC Global shareholders will hold approximately 43.5%.

The combined entity will operate under the DNOW name and continue trading on the NYSE under the DNOW ticker, though both brands will be maintained. David Cherechinsky, DNOW’s current President and CEO, will lead the combined company, which will remain headquartered in Houston, Texas.

The companies expect to generate $70 million in annual cost synergies within three years of closing through streamlining public company costs, corporate systems, and operational efficiencies. The transaction is anticipated to deliver double-digit Adjusted EPS accretion in the first year.

The merger has received unanimous approval from both companies’ boards of directors and is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.

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