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
