Saint-Gobain confirmed on Wednesday that it is in "advanced discussions" with a view to acquiring Australian building materials manufacturer CSR.

The French group said it had approached the company's board of directors with a non-binding indicative offer based on a price of nine Australian dollars per share, to be paid in cash.

Listed on the Australian Stock Exchange, CSR shares closed up 17% at nearly eight dollars on Wednesday in the wake of Bloomberg reports that Saint-Gobain was considering a takeover bid.

In a statement, Saint-Gobain said that a combination with CSR would be 'attractive' to both groups, pointing to their long-standing partnership and similar business models.

It said that its offer remains subject to confirmatory financial due diligence and the signing of definitive legal documentation relating to the transaction.

On the Australian Stock Exchange (ASX), CSR currently has a market capitalization of around 3.2 billion Australian dollars, or almost two billion euros.

In Paris, Saint-Gobain shares lost 1.3% following this announcement, marking one of the most significant declines in the CAC 40 index on Wednesday morning.

Copyright (c) 2024 All rights reserved.