Chicago Bridge & Iron Co. N.V
) announced that its shareholders have approved the proposed
The Shaw Group
). In a special meeting, over 90% of the company's shareholders
voted in favor of the acquisition, which is expected to complete
in the first quarter of 2013. However, the approval from the
shareholders of The Shaw Group is still pending.
In order to complete an acquisition, a minimum of 75% vote is
required in favor of the proposal to be carried out. The Shaw
Group is expected to schedule a shareholders' meeting on December
21, 2012. 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
Earlier, Chicago Bridge 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
globally with a backlog of more than $28 billion. Chicago Bridge
plans to finance the acquisition by cash and by debt of around
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 #3 Rank, which implies a
Hold rating on the stock.
CHICAGO BRIDGE (CBI): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
SHAW GROUP INC (SHAW): Free Stock Analysis
URS CORP (URS): Free Stock Analysis Report
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