Building products makers Boral and USG have announced a joint venture with USG for plasterboard products, with Boral gaining $US 575 million in cash from the merger.
Business Spectator and others report that the strategic joint venture would be called USG Boral Building Products, to be headed up by current CEO of Boral Gypsum Fredric de Rougemont.
The 50/50 JV will cover Asia, the Pacific and the Middle East, with manufacturing and distribution across 12 countries.
“The combination of our gypsum and related businesses in Asia, Australasia and the Middle East provides an unparalleled manufacturing and distribution footprint, encompassing some of the highest growth markets in the world,” said de Rougemont in a statement.
“The joint venture’s access to USG’s unrivalled technology and continued innovation will provide the business with superior performing products that are lighter, stronger and more efficient to manufacture, transport and install. This will build on Boral’s well-established gypsum operations in the region, creating a formidable and sustainable leadership position.”
Fairfax reports that the assets of the venture will be worth $US 1.6 billion, made up of $A 1.35 billion of Boral’s assets and $US 250 million of USG’s assets and intellectual property.