CB&I in $3bn Shaw buy

Eoin O'Cinneide

 30 July 2012 12:04 GMT

Engineering outfit CB&I is snapping up rival Shaw Group in a cash-plus-shares deals worth in excess of $3 billion.

CB&I is spending a total of around $3.04 billion on acquiring NYSE-listed Shaw with the vast majority of that in cash.

The former is offering $41 in cash per Shaw share as well as $5 in its own shares to Shaw shareholders.

The deal is expected to close in early 2013 with CB&I dipping into its own cash reserves as well as utilising a $1.9 billion borrowing facility to fund the takeover.

"Combining CB&I and Shaw will create one of the most complete energy focused technology, engineering, procurement, fabrication, construction, maintenance, and associated services…

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