Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.

CB&I to buy engineering major Shaw Group, seeks energy diversification

07.30.2012  | 

CB&I believes that combining the two companies will create “one of the most complete energy-focused technology, engineering, procurement, fabrication, construction, maintenance, and associated services companies in the world”. The acquisition is expected to close in early 2013.


CB&I has agreed to acquire Shaw Group, a US-based engineering company primarily focused on serving clients in the power generation and government services sector, officials with both firms said Monday.

The acquisition is expected to close in early 2013. Reports valued the overall deal at approximately $3 billion.

CB&I said that combining the two companies will create “one of the most complete energy focused technology, engineering, procurement, fabrication, construction, maintenance, and associated services companies in the world”.

With a global workforce of nearly 50,000 employees, backlog of over $28 billion, and engineering and fabrication facilities strategically located on all continents, the company will have the capacity to execute large energy infrastructure projects now and in the future, according to company officials.

“This is a highly compelling transaction that we believe will create significant value for our shareholders,” said Philip K. Asherman, president and CEO of CB&I.

“By adding them into the CB&I family, we will become fully diversified across the entire energy sector, from power generation to LNG, from refining to gas processing, from offshore to oil Sands, and beyond,” Mr. Asherman continued.

“We will have the capabilities and the expertise to provide our clients with the full range of solutions, wherever they are in the world.”

CB&I will acquire Shaw for $46.00/share in cash and stock, with shareholders receiving $41.00 in cash and $5.00 in CB&I equity (0.12883 shares based on a recent average stock price of $38.81/share) for each share of Shaw stock at closing.

CB&I will use cash on the balance sheets of both companies, along with approximately $1.9 billion in debt, to finance the acquisition, it said.

“Shaw’s leadership position in the power, environmental and infrastructure industries will complement CB&I’s current business,” said J.M. Bernhard Jr., CEO of Shaw.

The acquisition of Shaw was unanimously approved by the directors of each company’s boards.

The transaction is subject to approval by each company’s shareholders, along with the receipt of certain regulatory approvals and the satisfaction of other customary closing conditions.

Asherman will continue as CEO of the combined company.

CB&I plans to operate Shaw as a business sector under the brand name CB&I Shaw, the company said, enabling the new company to retain Shaw’s brand equity, particularly in the power industry.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.


Technip ,France and Shaw Chemical UK,they do the same which also to go on Refineries and Chemical plants, on FEED and EPC.

Gustavo Heins

Good for all, CB&I is one of the best companies in engineering, construction and others fields

Related articles


Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry


Is 2016 the peak for US gasoline demand?




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2016 Hydrocarbon Processing. © 2016 Gulf Publishing Company.