Chicago Bridge agrees $3bn deal for Shaw Group
Shaw Group has signed a merger agreement under which Chicago Bridge & Iron (CB&I) will acquire Shaw in a transaction valued at approximately US$3bn (£1.9bn).
The combination of CB&I and Shaw will create one of the world’s largest engineering and construction companies focused on the global energy industry.
“I am extremely proud of the company we have built and operated for the last 25 years. Shaw’s leadership position in the power, environmental and infrastructure industries will complement CB&I’s current business, and I am confident that, together, these two companies will continue to excel,” said chairman, president and chief executive officer of Shaw JM Bernhard Jr. “While Shaw has been growing in our business and has many opportunities ahead of us, we believe this transaction is in the best interest of and creates significant value for our shareholders, our employees and our customers.”
CB&I plans to operate Shaw as a business sector under the brand name CB&I Shaw.
“This is a highly compelling transaction that will create significant value for our shareholders,” said Philip K. Asherman, president and chief executive officer 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. We will have the capacity and the expertise to provide our clients with the full range of solutions, wherever they are in the world. Most importantly, we will have the experience and relationships necessary to successfully meet and exceed our clients’ expectations.”
The transaction has been approved unanimously by the boards of directors of both companies. It is currently is expected to close during the first calendar quarter of 2013.
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This article was published on 31/07/2012 (last updated on 31/07/2012).