Australian building materials manufacturer CSR has agreed to a 4.5 billion Australian dollar ($3 billion) takeover offer from France's Cie de Saint-Gobain.
According to a statement on Monday, the two companies have entered into a definitive agreement under which Saint-Gobain proposes to acquire all of CSR's shares for A$9 each. The offer represents a 33% premium to CSR's closing price on February 20, the day before Bloomberg News reported that Saint-Gobain was considering a potential acquisition of its Australian rival.
In a statement, Saint-Gobain CEO Benoît Bazin said the deal was “a decisive step in establishing Saint-Gobain's leading presence in the high-growth Australian construction market.”
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The CSR Board of Directors unanimously recommended that shareholders vote in favor of the transaction. The transaction is expected to close in the second half of 2024, subject to necessary regulatory approvals, Saint-Gobain said.
According to its website, Saint-Gobain employs 168,000 staff and operates in 75 countries. In addition to construction materials, the company also manufactures windows and components for the automotive and broader transportation sector, as well as products used in other industries such as healthcare.
CSR was founded in 1855 and its brands include Gyprock gypsum board and Bradford Insulation, according to its website. The company says it has 30 manufacturing plants in Australia and New Zealand, employing 2,500 people and generating combined revenues of A$2.7 billion.
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