Businesses in Louisiana are constantly changing and growing. Louisianans may be interested to know that The Shaw Group, a Baton Rouge based company specializing in engineers and construction in the energy field, will be acquired by Chicago Bridge & Iron Co. for the price of $3 billion.
Of particular note, The Shaw Group is the first company in the field to be permitted to build new nuclear reactors since 1978, which may be one of the many impetuses behind CB&I’s desire to acquire the company.
Shaw will become a retooled division of CB&I, functioning under the name CB&I Shaw. The Current CEO of The Shaw Group will step down from his position when the deal is completed. In his place, the current CB&I CEO will take control of the company as a whole. CB&I will be paying $46 a share in cash and stock options, and hopes to complete the acquisition by the first part of next year.
Whether or not they will be successful in closing the deal on their anticipated timeframe depends on the details working themselves out smoothly. Mergers of this scale present the chance for some type of problem or hitch to arise. For instance, as just referenced, the issue of leadership reorganization, from the highest levels of management to the lowest, can cause serious complications for the future of the business if the terms of the deal are not clear or the transition is not handled properly.
This is only one of the potential issues that can hamper a merger of any scale. Even the smallest acquisition will need to consider issues of leadership, employee relations and following government regulations. Almost inevitably, mergers of any scale require guidance to ensure that all the legal and practical requirements are met.
Source: Houston Business Journal, “The Shaw Group agrees to CB&I’s $3 billion takeover bid,” Emily Wilkinson, July 30, 2012