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CB&I in $3bn buyout of Shaw

CB&I, an engineering group based in Texas, has struck a deal to pay $3bn for the Shaw Group, a Louisiana-based energy services company that is developing the first US nuclear power plants in a generation.

The deal comes despite challenges facing the nuclear power sector, with safety concerns rising since last year’s disaster at Japan’s Fukushima nuclear plant.

CB&I will pay a steep premium for Shaw in the cash and stock deal. Shaw shareholders will receive $41 per share in cash and $5 per share in CB&I equity. That amounts to a 72 per cent premium over Shaw’s closing stock price on Friday.

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