Chicago Bridge & Iron Co. (CBI) agreed to buy SHAW for a price of $3 billion, or $41 cash and $5 stock over the weekend causing a massive gain in SHAW’s stock price. The acquisition will create one of the world’s largest energy service firms. SHAW will bring a new nuclear sector to CBI’s portfolio, with the first nuclear reactor design permitted since 1978. This deal marks the largest construction and engineering industry merger of the 79 deals sealed this year with an average premium of around 10%.the deal is expected to be completed in early 2013 after approval from shareholders, management and regulators.
David Cornes holds a degree in economics from the University of Montana.