CB&I, Shaw deal should be done by Tuesday

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Advocate business staff report

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CB&I is expected to complete its $3 billion acquisition of Baton Rouge-based Shaw Group Inc. by Tuesday, and Shaw will no longer be listed in Standard & Poor’s MidCap 400 after that, according to S&P Dow Jones Indices.

Primerica Inc. will replace Shaw in the MidCap 400, according to S&P Dow Jones.

Shaw is an engineering, construction and fabrication company with about 27,000 workers worldwide. Of those, 4,000 are in Louisiana, with around 1,000 in Baton Rouge.

CB&I, whose corporate offices are in The Woodlands, Texas, engineers and builds some of the world’s largest infrastructure projects. CB&I has around 23,000 employees worldwide.

The combined company will be one of the largest in the Western Hemisphere.

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Comments (2)


1) Comment by Entergy - 09/02/2013

Bernard....he's rich, now he wants power. Next greed. Or is he already there?

2) Comment by RODEO CLOWN - 08/02/2013

QUESTION: Will SHAW be required to repay any of the "business incentives" granted the company by Jindal in his 2008 effort to keep the company headquartered in Louisiana? Aug 26, 2008 Governor Jindal, The Shaw Group, Inc. and Westinghouse Announce Module Fabrication and Assembly Facility in LA "If all performance requirements are met, Shaw and the joint venture will receive a state incentive package worth approximately $210 million over 15 years. LSU’s economic-impact analysis indicates Louisiana will receive $480 million in additional tax revenues from this agreement. The state incentive package includes $32.5 million for infrastructure, workforce training, and dock bulkhead improvements; the Quality Jobs incentive (roughly $37.5 million over 10 years); the Industry Assistance Program (tax exemptions of up to $5 million per year for 10 years – total up to $50 million); and a forgivable, performance-based loan (drawdown of $9 million per year for 10 years). Approximately $19.5 million in local incentives are being provided, including an effective 15-year property-tax abatement at the Port of Lake Charles worth roughly $17 million; infrastructure grants of $1 million each from the City of Lake Charles and Calcasieu Parish; and a $500,000 contribution from the Port of Lake Charles toward bulkhead improvements. To protect the return on investment for the state and local governments, the incentive package includes strict drawback terms tied to capital investment and job creation requirements."