Boral Limited
(ASX:BLD)and USG Corporation have entered into an agreement to form a strategic joint venture that will deliver a portfolio of building products across Asia, Australasia and the Middle East.
Boral says the 50/50 joint venture, to be called USG Boral Building Products, would leverage the geographic footprints and technological expertise of both companies to create a $US1.6 billion partnership.
Boral will contribute its Gypsum division to the JV, which includes its plasterboard operations in Australia and Asia, while USG will contribute its Asian and Middle Eastern businesses.
The $US1.6 billion valuation of the JV comprises $1.35 billion for Boral’s assets and $US250 million for USG’s assets.
The group says its net profit after tax for fiscal 2014 will likely reduce by around $15 million, assuming the JV is completed by January next year.
Boral booked a net loss of $205.7 million in fiscal 2013.
