The Knauf Group has entered into a definitive merger agreement with Boral in order to combine the Asian businesses of Knauf and USG Boral. The new Joint Venture will span across Asia (China, India, Thailand, Korea, Vietnam, Indonesia, Philippines, Malaysia and Singapore) and exclude the Middle East, Oman, Australia and New Zealand.
“The formation of the new Joint Venture will accelerate our ambition to be the industry leader in the APAC region,” said Knauf CEO Asia Pacific Murray Read in an announcement.
“The interactions with USG Boral preceding the signing of a definitive merger agreement have validated our belief that a partnership is the best option for all stakeholders.”
The merger transaction is expected to close near the end of 2019 and is subject to regulatory approvals and other closing conditions.
In Australia regulatory requirements will cause Knauf to divest its 50 per cent stake in the Australian and New Zealand USG Boral businesses to Boral. This move will see Boral return to 100 per cent ownership of USG Boral Australia and New Zealand.
“The merger agreement with Boral solidifies Knauf’s position as market leader in Asia and it is very exciting news for the Knauf Group,” said Knauf Australia Managing Director Gavin Burton, adding that the agreement will not have an influence on the day-to-day operations of Knauf Australia.
“In Australia it’s business as usual. Knauf Australia has experienced tremendous growth since starting our journey in the country in 2009. We will continue to build on this strong foundation by always supplying our clients and customers with quality lightweight construction materials, innovative solutions and only the best customer service,” Mr Burton said.