(Reuters) – Saint-Gobain announced on Monday the definitive purchase of its Australian counterpart CSR Limited for an enterprise value of 4.5 billion Australian dollars (2.72 billion euros).
The French construction materials group has reached an agreement to “strengthen its presence in the high-growth Asia-Pacific markets”, with the acquisition in cash of all the outstanding shares of CSR, for 9 Australian dollars per share .
The price represents a premium of approximately 7.4% to the last value of CSR stock.
“CSR will naturally be consolidated into Saint-Gobain’s country organization as the entity operating the Group’s activities in Australia and New Zealand within the Asia-Pacific Region,” explains Saint-Gobain in a press release.
Founded in 1855, CSR is one of Australia’s oldest companies. Initially a sugar refining company, it diversified into construction products.
The transaction, unanimously recommended to shareholders by the board of directors of the Australian company, is expected to be finalized during the second half of 2024.
Negotiations between the two groups were announced on February 21, causing CSR stock to jump.
(Written by Gaëlle Sheehan, with Sudip Kar-Gupta)
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