Saint-Gobain in talks to snap up CSR

(Sharecast News) - Saint-Gobain is in advanced talks to acquire Australian rival CSR, the construction materials group confirmed on Wednesday. In a brief statement, the French firm said it had made a non-binding indicative offer of AU$9 (£4.70) per share, valuing the business at more than AU$4bn.

Saint-Gobain called the proposed tie-up an "attractive opportunity" for both companies which would leverage their long-term partnership, similar business models and cultures.

It continued: "This acquisition would be fully aligned with Saint-Gobain's strategy as a worldwide leader in light and sustainable construction and an opportunity to enter the Australian market."

Saint-Gobain said the board of CSR had unanimously resolved to pursue the offer, subject to entry into a binding transaction. Due diligence is now under way.

Any deal will be subject to regulatory approval as well as the backing of CSR's shareholders.

CSR's shares soared on the news - which was first reported by Bloomberg - and closed 17% higher at AU$7.95. As at 1030 GMT, Saint-Gobain's Paris-listed shares were largely flat.