Saint-Gobain in negotiations for the acquisition of the Australian construction group CSR

This operation is part of a vast rebalancing of activities undertaken by Saint-Gobain, which in five years has seen more than a third of its scope transformed: the French group has bought many companies in Anglo-Saxon countries like the United States and Canada, in building chemistry in particular, and it has shed activities far from its core business, such as distribution.

The materials group offered a price of 9 Australian dollars (around 5,5 euros) in cash per share, according to a press release released on Wednesday, confirming information from Bloomberg.

The board of directors of CSR Limited confirmed its unanimous agreement to continue talks on these bases, the press release said.

The dividend potentially paid by CSR for its financial year ending March 31, 2024 would be deducted from the price of the cash offer, the press release said.

Saint-Gobain's offer remains subject to a "due diligence" procedure or acquisition audit, the signing of final legal documentation, regulatory authorizations as well as the approval of CSR shareholders.

Saint-Gobain identifies commercial and cultural synergies with CSR, due to its "long-standing partnership" with the Australian group. This acquisition would notably allow the French group to penetrate the Australian market.

Saint-Gobain achieved a turnover of 51,2 billion euros in 2022 and employs 168.000 employees in 75 countries. Its 2023 results will be published on February 29, 2024.

CSR's turnover for its annual financial year ending at the end of March 2023 amounted to 2,6 billion Australian dollars, or almost 1,6 billion euros. The company employs nearly 2.800 employees.

Saint Gobain shares lost 0,5% late Wednesday morning on the Paris stock exchange, to 67,96 euros.