Chicago Bridge & Iron Co. N.V. (CBI - Free Report) 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 - Free Report) and Jacobs Engineering Group Inc. (JEC - Free Report) , currently carries a short-term Zacks Rank #3 (Hold).