Saint-Gobain's Acquisitions Support Structurally Higher Profit Margins

Saint-Gobain manufactures and distributes a wide range of building materials, many of which are not entirely synergistic. We cannot fault its strategy of streamlining the company and divesting from businesses where it has not achieved the required scale geographically to compete profitably. Many of the group’s wide range of products don't tend to travel long distances, which tend to make markets very regional and provide minimal benefits to being a global player. The group’s strategy of being a one-stop shop for customers by selling a wide range of construction products is a common theme across the industry and is unlikely to provide a durable competitive advantage.