CSR Limited
(ASX:CSR) and Boral Limited
(ASX:BLD) have proposed a joint venture to combine their east coast brick operations.
The building products manufacturers will approach the Australian Competition and Consumer Commission seeking clearance for the transaction.
The pair propose a split of 60 per cent to CSR and 40 to Boral, which represents the company’s relative sizes. There is no cash consideration as part of the proposed joint venture.
Combined revenue is forecast to reach about $230 million with efficiency gains aimed at reducing per unit costs of production.
Boral chief executive Mike Kane said the Australian cladding industry has faced major changes in demand over the past 30 years resulting in a significant reduction in brick use.”
CSR reported a net profit of $51.4 million in the half year to September 30th 2013.
