France's Saint-Gobain strikes agreement to buy Australia's CSR (updated)

CSR

26/02/2024 06:41

(Adds more detail throughout)
       PARIS, Feb 26 (Reuters) - French construction materials
company Saint-Gobain  SGOB.PA  said it had signed a definitive
agreement to buy Australian peer CSR Limited  CSR.AX  in a deal
with an enterprise value of A$4.5 billion ($2.95 billion).
    Saint-Gobain said it was offering A$9.00 for each share in
CSR Ltd, adding that CSR's management favoured the deal.
    CSR is one of Australia's oldest companies, having been
established in 1855 initially as a sugar refining business,
before diversifying into building products. 
    CSR shares last week surged when the firm said it had
received an offer from Saint-Gobain.
        The offered price adds a premium of around 7.4% to CSR's
last share price, and gives CSR an equity market valuation of
around A$4.3 billion.
  
        "I am very confident that this transaction will result
in enhanced growth and value creation for Saint-Gobain
shareholders and provide attractive opportunities for both
teams," said Saint-Gobain CEO Benoit Bazin.
  
        The French company expects to close the deal in the
second half of this year, and that the acquisition of CSR should
boost its earnings per share within the first year.
  
        CSR carries a A$187.1 million provision on its book, as
at Sept. 30, 2023, to cover any future asbestos-related
liabilities that may arise from the company's sale of
asbestos-related products in the past.
  
    ($1 = 1.5263 Australian dollars)

 (Reporting by Sudip Kar-Gupta, editing by Tassilo Hummel)
 ((sudip.kargupta@thomsonreuters.com;))