Boral sells U.S. products business after rejecting Seven bid

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Australia's Boral Ltd (BLD.AX) said it would sell its North American building products business to a unit of NYSE-listed Westlake Chemical Corp (WLK.N) for $2.15 billion, throwing a spanner in the works of a takeover bid by Seven Group (SVW.AX).

Boral's shares rose as much as 4% to A$7.06, their highest since October 2018, after the building and construction materials supplier revealed its deal to sell the U.S.-based business in a disclosure responding to Seven's bid.

Seven owns 23.18% of Boral, and made the offer in May after failing to raise its stake to 30% due to regulatory setbacks."Our view is that Boral should have secured more. This business has been outperforming while the Australian business is under-performing," a Seven spokesperson said in an email."Seven Group made a bid that was expected to get turned down to clear the way for them to keep buying more," said Mathan Somasundaram, CEO at Deep Data Analytics.

 

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