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Nov 13 2019, 08:15 GMT
Saint-Gobain (SGO) is to use disposal proceeds to acquire US plasterboard manufacturer Continental Building Products for $1.4bn. The deal sees the group expand its market share in the US, acquiring a high-margin competitor with significant synergy potential. The strategic rationale appears sound even if the price paid seems high, especially given the point in time in the US construction cycle. While debt levels will not be stretched, the deal raises questions about use of disposal proceeds where debt paydown was the expected outcome.
Nov 13 2019, 08:15 GMT