CSR AND BORAL TO MERGE BRICK OPERATIONS

CSR AND BORAL TO MERGE BRICK OPERATIONS

CSR Limited (ASX:CSR) and Boral Limited (ASX:BLD) will combine their brick operations on the east coast, to save money in a declining industry.

The joint venture is expected to save up to $10 million in costs each year, pending approval by the Australian Competition and Consumer Commission.

“The Australian cladding industry has faced major changes in demand over the past 30 years, resulting in a significant reduction in brick use.

The deal is expected to net $230 million in revenue annually, with CSR owning a 60 per cent stake and BLD on 40 per cent following a valuation.

“It is about strengthening the opportunity for employees and reinvesting in the industry while delivering satisfactory returns through the building cycle,” he says.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Ocean Guardian administrator in talks with "several parties" to secure its future

Ocean Guardian administrator in talks with "several parties" to secure its future

After two withdrawn initial public offering (IPO) attempts in 2018 ...

Westpac breached Banking Code of Practice in NT branch closure, putting vulnerable customers at risk

Westpac breached Banking Code of Practice in NT branch closure, putting vulnerable customers at risk

The independent body tasked with keeping bank behaviour in check ha...

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Sydney-based cyber security consultancy CSO Group is set to join fo...

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange has reached a deal with the United States Department...