In
an engineering merger that will create one of the biggest professional service
firms in the energy sector of the world economy, Chicago Bridge & Iron
announced yesterday it is paying about $3 billion in cash and stock to buy up Baton
Rouge based Shaw Group, another engineering and construction firm deeply
involved in the energy sector. According to leaders at both companies, the
resulting entity will “Become fully diversified across the entire energy
sector.”
Shaw
Group will become a business sector of worldwide CB&I under the brand name “CB&I
Shaw.” Shaw Group Chairman J. M. Bernard is leaving the consolidated business
once the deal closes in the first quarter of next year. Some speculate he will
run for public office. Shaw Group’s shares traded up 65% to $44 per share in
premarket transactions on the announcement.
