CB&I in US$ 3 billion Shaw acquisition

By Helen Wright28 August 2012

Chicago Bridge & Iron (CB&I) has acquired fellow US contractor Shaw Group in a US$ 3 billion stock and cash deal that creates a combined entity with a backlog of over US$ 28 billion.

CB&I president and CEO Philip Asherman will become president and CEO of the combined company, which will be operated as an energy and power specialist under the brand name CB&I Shaw.

Approved unanimously by the boards of directors of both companies, the acquisition will see Shaw shareholders receive US$ 41 in cash and US$ 5 in CB&I equity per share, and is expected to close in early 2013.

CB&I's consolidated 2011 revenue was $4.6 billion, while Shaw reported revenues of US$ 5.9 billion last year. As a combined entity, the companies would have reached 30th place on International Construction's (iC's) 2012 ranking of the world's 200 largest construction companies.

As individual entities, CB&I was ranked 80th on this year's Global Top 200 list, while Shaw was ranked 62nd.

Mr Asherman said the tie-up would create a company that was fully diversified across the energy sector. "From power generation to liquefied natural gas, from refining to gas processing, from offshore to oil sands, and beyond - we will have the capabilities and the expertise to provide our clients with the full range of solutions, wherever they are in the world."

He said CB&I Shaw's strategy would be to expand in growth areas including nuclear, gas and coal.

Shaw chairman, president and CEO JM Bernhard Jr will pursue new business and public service interests once the transaction has been finalised.

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