Saint-Gobain, the global leader in light and sustainable construction, has made a non-binding offer to acquire CSR Limited, a leading Australian building materials company, for A$9 per share in cash, valuing the deal at around A$3.5 billion.

The offer is subject to due diligence, regulatory approvals, and CSR shareholders’ approval. CSR’s board has unanimously agreed to pursue the offer, which represents a 25% premium over CSR’s closing price on Friday.

Saint-Gobain said the acquisition would be fully aligned with its strategy of expanding its presence in high-growth markets and enhancing its portfolio of sustainable solutions. The company also said it has a long-term partnership with CSR and sees a cultural fit and development opportunities for both businesses.

CSR is one of Australia’s largest suppliers of building products, such as plasterboard, insulation, bricks, and roofing. The company also has a stake in the Tomago aluminium smelter, which is not part of the deal.

Saint-Gobain is a worldwide leader in light and sustainable construction, with operations in 75 countries and sales of €51.2 billion in 2022. The company designs, manufactures and distributes materials and services for the construction and industrial markets, such as glass, ceramics, plastics, and abrasives.

The deal is expected to close in the second half of 2024, subject to the satisfaction of customary conditions.