Asia Stocks to Track US Rebound on Profit Optimism: Markets Wrap
European stocks rose for a second day after strong earnings from some of the region’s biggest companies, while positive economic data helped boost sentiment.
Latest Videos
The information you requested is not available at this time, please check back again soon.
European stocks rose for a second day after strong earnings from some of the region’s biggest companies, while positive economic data helped boost sentiment.
Taylor Wimpey Plc is failing to see lower mortgage rates translate into higher levels of home sales and is maintaining its forecast for fewer deals in 2024.
Chinese mainland investors increased their portion of total turnover of Hong Kong stocks to a record daily average in April, with the latest measures to bolster the city’s position potentially boosting their purchases.
Zhao Xiaowei did what would have been unthinkable just a few years ago: He quit his Beijing barista job and returned to his northeastern rust-belt hometown for a better future.
South Korea is emerging as a closely watched weak link in the $63 trillion world of shadow banking.
Jun 20, 2021
Bloomberg News
,(Bloomberg) -- Westlake Chemical Corp. has agreed to acquire Australian materials firm Boral Ltd.’s North American building products business for $2.15 billion in cash.
The boards of the companies have unanimously approved the transaction, which is expected to complete in the second half of this year, according to a statement on Sunday. Shares in Boral rose as much as 4.1% to the highest level since October 2018 in Sydney.
Boral’s North American building productions operation employs about 4,600 people across 29 manufacturing sites in the U.S. and Mexico to produce products including roofing, windows, shutters and decorative stone. It generated more than $1 billion in revenues during the fiscal year ended June 30, 2020.
The acquisition will nearly double Westlake’s building products business in North America and could bring in cost synergies of about $35 million a year, the statement said.
“The combination of Boral North America’s product lines with Westlake’s building products businesses will greatly expand our housing-related building products business and extend our presence in North America,” Westlake President and Chief Executive Officer Albert Chao said in the statement.
The deal is the most significant step yet following a strategic review by Boral, which is looking to unwind a push into the U.S. market dating back to 2017 with its acquisition of Headwaters Incorporated at an enterprise value of $2.6 billion. The investment was later written down.
Boral is also currently defending itself from an unsolicited takeover offer from Australian firm Seven Group Holdings Ltd. The disposal could open a pathway for Seven Group to revise its offer or another potential bidder to enter discussions with Boral, Jefferies analysts led by Simon Thackray wrote in a Monday note.
The sale will not be subject to tax for Boral in the U.S. or Australia due to carried forward losses, the company said in a separate statement on Monday. Its net debt target will fall to about A$1.3 billion from A$1.5 billion and the company will access options to distribute surplus capital. Boral continues to explore options for its North American Fly Ash business and plans to provide updates in August.
(Adds Westlake CEO’s comments in fourth paragraph.)
©2021 Bloomberg L.P.