The Shaw Group has signed a definitive merger agreement with CB&I under which CB&I will acquire Shaw in a cash and stock transaction valued at approximately $3bn (£1.9bn).
Under the terms of the agreement, CB&I will acquire Shaw for $46 per share in cash and stock. Shaw’s shareholders will receive $41 in cash and $5 in CB&I equity (0.12883 shares based on an agreed upon recent average stock price of $38.81 per share) for each share of Shaw stock at closing.
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. Both companies believe this agreement will create value through a combined company with broader participation in a robust energy market.
CB&I plans to operate Shaw as a business sector under the brand-name CB&I Shaw.
