Shaw Group, La.'s third largest co., approves sale to infrastructure giant

Shaw Group, La.'s third largest co., approves sale to infrastructure giant

Credit: AFP/Getty Images

New Orleans, UNITED STATES: Representatives of the Shaw Group, an engineering and construction company, answer questions from business owners and prospective employees, at a "Back to Business" forum in downtown New Orleans,Louisiana 06 October 2005. Shaw, one of the main contractors working on rebuilding New Orleans in the wake of Hurricane Katrina, is responsible for the dewatering of New Orleans, as well as setting up temporary housing for the displaced population of the city. AFP PHOTO / Robyn BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)

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wwltv.com

Posted on December 21, 2012 at 1:03 PM

Updated Friday, Dec 21 at 3:37 PM

David Hammer / Eyewitness News
Email: dhammer@wwltv.com | Twitter: @davidhammerWWL

NEW ORLEANS - Shareholders of The Shaw Group, one of only three Fortune 500 companies in Louisiana and a key player in post-Katrina public contracts, voted Friday to be acquired by infrastructure giant CB&I.

The $3.1 billion purchase was approved by 99 percent of shareholders who voted in Baton Rouge. CB&I shareholders overwhelmingly approved the deal earlier this week.

The deal is scheduled to close in the first quarter of 2013 and would create a new division, CB&I Shaw. Shaw currently holds major state recovery project contracts and subcontracts, but most of those are winding down.

Shaw shareholders stand to collect $41 cash and about an eighth of a share of CB&I stock for every share of Shaw stock they hold.

Shaw was the leading subcontractor for the state's $10 billion Road Home homeowner rebuilding program, ran the $750 million home elevation grant program and still runs the $500 million Small Rental repair program.

Shaw spokeswoman Gentry Brann, the former Road Home spokesperson, said the merger will not have a significant impact on current Shaw operations or employees.

"We do not anticipate any changes to any of Shaw's major offices at this time," Brann said. "CB&I and Shaw's businesses are very complementary that we believe will grow stronger together. The skill sets of the companies and our employees work very well together."

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