Saint-Gobain Agrees to Buy Australia's CSR in $2.8 Billion Deal

By Adria Calatayud

France's Saint-Gobain agreed to buy Australia's CSR for 4.30 billion Australian dollars ($2.82 billion) in cash in a deal aimed at increasing its exposure to Asia-Pacific.

The French construction-materials company said Monday that it entered into a definitive agreement to buy its Australian peer with an offer of A$9.00 a share. The bid represents an enterprise value of A$4.5 billion, including debt and at least A$1.3 billion in property value that could be monetized, Saint-Gobain said.

The companies disclosed they were in talks last week.

Saint-Gobain's board unanimously approved the combination, while CSR's board recommended that its shareholders vote in favor of the deal, Saint-Gobain said.

The deal is expected to be closed in the second half of the year.

Saint-Gobain said it expects the deal to help its earnings per share from the first year and that the transaction will increase the company's exposure to Australia's high-growth construction market.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

February 26, 2024 01:50 ET (06:50 GMT)

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