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Mergers & Acquisitions CB&I Acquires Shaw, Creating Major Player in Power Engineering

| Editor: Dominik Stephan

CB&I has entered into a definitive agreement to acquire power and civil engineering specialist Shaw. The bid has triggered an upward spurt for Shaw stocks. This multi–billion acquisition could create one of the most complete energy focused technology, engineering, procurement, fabrication, construction, maintenance, and associated services companies in the world, industry insiders believe.

Related Companies

General contractor Chicago Bridge & Iron (CBI) has entered into a definitive agreement to acquire Shaw for $46.00 per share on Monday.
General contractor Chicago Bridge & Iron (CBI) has entered into a definitive agreement to acquire Shaw for $46.00 per share on Monday.
(Picture: Wikimedia Commons )

The Woodlands; Texas/USA – CB&I has made an offer of $46.00 per share in cash and stock for Shaw shares, triggering a temporary bull movement of more than 50 percent. The American engineering and construction company plans to use cash on the balance sheets of both companies, along with approximately $1.9 billion in debt to finance the acquisition. Given the acceptance of competition authorities, the transaction could be completed in early 2013.

“Fully Diversified Across Entire Energy Sector”

"This is a highly compelling transaction that we believe will create significant value for our shareholders,” said Philip K. Asherman, President and CEO of CB&I. “Shaw is a great company with tremendously talented employees. By adding them into the CB&I family, we will become fully diversified across the entire energy sector, from Power Generation to LNG, from Refining to Gas Processing, from Offshore to Oil Sands, and beyond. We will have the capabilities and the expertise to provide our clients with the full range of solutions, wherever they are in the world. Most important, we will have the experience and relationships necessary to successfully meet and exceed our clients’ expectations.”

Acquisition Approved by Boards of Both Companies

The acquisition of Shaw Group by CB&I has been unanimously approved by the Directors of the respective company’s boards. The deal has still to be approved by each company’s shareholders, along with the receipt of certain regulatory approvals and the satisfaction of other customary closing conditions, CB&I told the press. Its current CEO, Philip K. Asherman, is expected to lead the combined company.

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