THE WOODLANDS, Texas (AP) -- Chicago Bridge & Iron Co. says it has agreed to buy Shaw Group Inc. for about $3.04 billion in cash and stock.
The Woodlands, Texas-based company, also known as CB&I, says the addition of Baton Rouge, La.-based Shaw will create one of the most complete companies building equipment to tap energy sources.
Under the deal, Shaw shareholders will receive $41 in cash and CB&I stock worth about $5 for each of their Shaw shares. That represents an about 72 percent premium over Shaw's Friday closing stock price.
Shaw shares jumped 68 percent in premarket trading Monday.
CB&I expects the deal to boost its earnings per share by double-digits in the first year before transaction-related costs.
The deal has been approved by both companies' boards, but remains subject to shareholder approval. It's expected to close in early 2013.
