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 companies in the world,” CB&I wrote on Monday.
President and chief executive Philip Asherman commented: “By adding [Sham] 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
“We will have the capabilities and the expertise to provide our
clients with the full range of solutions, wherever they are in the
The plan is to operate Shaw as a business unit under the brand name CB&I Shaw.