Mergers & Acquisitions Shaw to Sell its Energy & Chemicals Division to Technip
Shaw divests its problem child: The US engineering company announced to sell its energy and chemical (E&C) division to French Technip for US $ 300 million. The company's CEO Jim Bernhard believes that the selling of this long time problematic business, that only moved back into profit this year, would help Shaw to focus on its core industries.
Baton Rouge, Louisiana/USA – Just before being transferred to a new owner, Shaw sharpens its focus: By selling its energy and chemical (E&C) division to French engineering group Technip, Shaw could divest one of its most disputed operations. E&C, 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. Shaw stated it would keep its E&C experts at the company's headquarters in Baton Rouge as well as a consulting unit, moving both into other divisions.
Technip Broadens Downstream Portfolio
For Technip, the acquisition comes as a sensible complement to its downstream technologies portfolio, industry experts beleive. The French company has piled up a record order backlog and now looks for growth opportunities by acquisition: Already in 2011, Techip bought the U.S. offshore specialist Global Industries.
French Company to Buy Into Shale Gas Boom?
Technip further hopes to take a piece of the pie of the recent shale gas boom in the US with this transaction, as prospects for American. petrochemical developments driven by the cheap natural gas feedstock are promising. The purchase could be completed by the end of the fiscal year, Shaw speakers told the press.
Shaw Divests Problem Child Before Acquisition by CB&I
Earlier this week, the company agreed with Chicago Bridge & Iron Company (CB&I) in an acquisition of Shaw by CB&I through a cash and stock transaction valued around US $ 3 billion. After approval by regulatory authorities and both companies shareholders, the acquisition could be completed by 2013. More in our article CB&I Acquires Shaw, Creating Major Player in Power Engineering.