Former Attorney General Investigates MRC Global Sale to DNOW Inc.

Former Attorney General Investigates MRC Global Sale to DNOW Inc.

2025-07-01 companies

New Orleans, Wednesday, 2 July 2025.
An investigation led by former Louisiana Attorney General Charles C. Foti, Jr. scrutinizes the fairness of MRC Global Inc.’s sale process and pricing to DNOW Inc., impacting investor confidence.

Details of the Proposed Sale

MRC Global Inc. (NYSE: MRC), a company specializing in the distribution of pipe, valves, fittings, and infrastructure products, has entered into a definitive agreement to be acquired by DNOW Inc. The transaction, valued at approximately $1.5 billion, including net debt, involves an all-stock exchange where MRC shareholders will receive 0.9489 shares of DNOW for each MRC share they own [1][2]. This merger aims to bolster DNOW’s market presence and capabilities within the energy sector, by merging resources to form a robust industrial solutions provider [3].

The law firm Kahn Swick & Foti, led by former Louisiana Attorney General Charles C. Foti, Jr., is spearheading an investigation into the sale process and pricing adequacy concerning MRC Global’s proposed acquisition by DNOW Inc. This inquiry seeks to determine whether the terms of the merger appropriately value MRC Global and if the sale process has been conducted fairly [1]. In particular, this examination aims to address critical investor concerns over potential undervaluation and possible antitrust implications that might affect market competition [4][5].

Market and Stock Performance Impact

As of 1 July 2025, MRC Global’s stock was trading at $13.34, marking a 2.70% decrease from the previous trading day, yet reflecting a 4.38% increase over the current year [2][6]. Market analysts have kept a ‘Buy’ consensus rating on the stock, with an average target price set at $15.67, suggesting a potential upside of 17.44% [6]. The scrutiny surrounding the acquisition and fluctuating stock performance highlights the importance for investors to stay informed as these developments could significantly affect shareholder value [7].

Timeline and Future Developments

The acquisition is expected to conclude by the fourth quarter of 2025, pending regulatory approvals and the resolution of ongoing investigations [6][8]. Charles C. Foti, Jr.’s investigation is anticipated to wrap up by 30 August 2025, offering clarity on any potential legal challenges or procedural inadequacies before the transaction’s finalization [5]. The outcomes of these proceedings are set to play a pivotal role in shaping the merger’s ultimate impact on both the companies involved and the wider market dynamics [3].

Sources


acquisition MRC Global