Chicago Bridge & Iron Co. N.V
) announced that it has completed the previously announced
acquisition of The Shaw Group. In a special meeting held on Dec
20, 2012, over 90% of the company's shareholders voted in favor
of the acquisition.
In order to complete an acquisition, a minimum of 75% vote is
required in favor of the proposal to be carried out. Once the
acquisition is completed, all the shareholders of Shaw will
receive $41.00 in cash and $5.00 in CB&I equity for every
stock of The Shaw Group held.
The Shaw Group primarily serves sectors like energy,
chemicals, power, environmental, infrastructure and emergency
CB&I had earlier signed an agreement to acquire Shaw Group
for $46.00 per share in cash and stock to form one of the largest
energy construction and engineering contracting firms in the
world with a backlog of more than $28 billion. CB&I plans to
finance the acquisition by cash and debt of around $1.9
Post acquisition, CB&I will become fully diversified
across the entire energy sector, including power generation, LNG,
refining and gas processing. This acquisition will expand its
portfolio of engineering and construction projects and is also
expected to boost its nuclear building services.
This would add significant business in utility plants, and
operations in environment, infrastructure and manufacturing.
Besides the broadening of addressable markets, this acquisition
will also add scope to its existing operating capabilities.
Chicago Bridge & Iron Company N.V. provides conceptual
design, technology, engineering, procurement, fabrication,
construction, and commissioning services to energy and natural
resource industries worldwide. Chicago Bridge, which competes
Jacobs Engineering Group Inc
), currently carries a short-term Zacks Rank #3 (Hold).
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