Mergers & Acquisitions Shaw Completes Divestiture of Energy & Chemicals Division to Technip
Shaw's previously announced divestiture of its Energy & Chemicals division to Technip of France is completed, clearing the way for the acquisition of Shaw by CB&I. Proceeds from the transaction were approximately $290 million in cash.
Baton Rouge, Louisiana/USA – The completion of this transaction satisfies one important condition of the recently announced agreement for CB&I to acquire Shaw, speakers told the press. Already earlier this month, CB&I had made an offer for the American engineering, construction, technology and support services provider. Industry insiders believe that this merger could create one of the leading players in pwer, environment and infrastructure engineering. After approval by regulatory authorities and both companies shareholders, the acquisition could be completed by 2013.
Energy & Chemicals has long been one of Shaw's most disputed operations: With a declining order backlog of US 344 million, is only a smaller part of Shaw, but had to take serious losses after the 2011 Fukushima nuclear disaster. Technip, on the other hand, could profit from a broader downstream technology portfolio and gain a foothold on the American market with this acquisition.