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Boral also today provided an update on progress to complete the USG Boral plasterboard transaction with Gebr Knauf KG (“Knauf”).
As announced on 26 August 2019, Boral entered into an agreement with Knauf to form an expanded 50:50 plasterboard joint venture (JV) in Asia and for Boral to return to 100% ownership of USG Boral Australia & New Zealand (NZ), with a call option granted to Knauf to return to 50% ownership of the Australia & NZ business within five years.
As Boral and Knauf work with regulators as part of an ongoing process to obtain the relevant approvals, Boral’s view now is that the ACCC is unlikely to approve the call option in relation to the Australia and NZ business.
As a result, a range of potential options will be considered. Any alteration to the transaction signed in August 2019 remains subject to agreement between Boral and Knauf, Board approval and ultimately will also require the approval of regulators including the ACCC and NZCC.