BPB directors accept revised Saint Gobain offer of £3.89bn

BPB directors accept revised Saint Gobain offer of £3.89bn

	Published : Thu, 17 Nov 2005 13:05 By : Paula Demarzio Print this Story

LONDON: France’s building material group Saint Gobain, today agreed to raise its bid for UK plasterboard maker BPB Plc, to just under £3.9 billion, in a deal that ends a five month long ‘hostile’ takeover battle.

The new offer, at 775p a share, is at least 100p bigger than its initial offer made in July this year. The British company has accepted the revised and “compelling offer which delivers full value for BPB's world leading position and its future prospects” chairman Ian Gibson said.

In an earnings forecast made earlier this month, the company had said profits could grow at least 10 percent considering surging demand for its plaster from growing markets like China. The rapidly growing construction industry in the US is one more reason for the UK company’s optimism.

Meanwhile, Saint Gobain expects to achieve synergies worth at least £68m over the next two years from the combined entity.

The French company, considered a world leader in ceramics, plastics, cast iron and glass, operates from over 49 countries. BPB, known for its ceiling tiles and insulation material, is acknowledged as one of the fastest growing companies. The UK company has 90 factories worldwide, and a workforce of over 12,500.

With the deal Saint Gobain will become the global leader in building interior solutions with added access to multi-regional markets. Expansion into plasterboard has long been an objective of the French company which it accomplishes with this acquisition.

The BPB directors have unanimously approved the bid and said they would recommend it to their shareholders. Most institutional shareholders of BPB have already accepted the offer as it was higher than expected.

The current BPB chief executive Richard Cousins would leave the organisation after the completion of the deal. Pierre-Andre De Chalendar said that there would be no job cuts at any of the UK firm’s facilities.