CB&I to acquire Shaw Group for $3bn

31 July 2012 (Last Updated July 31st, 2012 18:30)

CB&I, a multinational engineering company, will acquire the Shaw Group in a cash-and-stock deal valued at around $3bn, following a definitive merger agreement signed between the two companies.

Shaw Group

CB&I, a multinational engineering company, will acquire the Shaw Group in a cash-and-stock deal valued at around $3bn, following a definitive merger agreement signed between the two companies.

Under the agreement, CB&I will buy Shaw for $46 per share, with Shaw's shareholders receiving $41 in cash and $5 in CB&I equity for each share of Shaw stock.

Both companies believe that this deal will create value through a combined company with broader participation in the energy market.

Following the acquisition, CB&I intends to operate Shaw as a business sector under the brand name CB&I Shaw.

The move will enable the firm to retain Shaw's brand equity and allow the combined organisation to capitalise on the resources, capacity and best practices from each group."

The move will enable the firm to retain Shaw's brand equity and allow the combined organisation to capitalise on the resources, capacity and best practices from each group.

CB&I will finance the acquisition using cash on the balance sheets of both companies, as well as debt financing.

Deal is subject to regulatory approvals and other closing conditions, and is expected to close during the first calendar quarter of 2013.

Morgan Stanley & Co is acting as Shaw's exclusive financial advisor for this deal, and Vinson & Elkins LLP and Jones, Walker, Waechter, Poitevent and Carrère & Denègre are acting as legal advisors.


Image: The Shaw Group headquarters in Baton Rouge, Louisiana, US. Photo: courtesy of Magnus Manske.