CBI Completes SHAW Acquisition - Analyst Blog
February 14 2013 - 12:15PM
Zacks
Chicago Bridge & Iron Co. N.V. (CBI)
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 response
industries.
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 billion
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 with
Fluor Corporation (FLR) and Jacobs
Engineering Group Inc. (JEC), currently carries a
short-term Zacks Rank #3 (Hold).
CHICAGO BRIDGE (CBI): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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