Tuesday, July 31, 2012

Chicago Bridge & Iron Acquires Shaw Group

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.

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