US/Australia: Boral and USG Corporation have entered into agreements to form a US$1.6bn joint venture producing wallboard in 12 countries across Asia, Australasia and the Middle East. Boral will contribute its Gypsum division to the joint venture, which includes its plasterboard operations in Australia and Asia. USG will contribute its Asian and Middle Eastern businesses, as well as exclusive access to its ceilings, cement board, fibre board, lightweight plasterboard and joint compound building products technologies in the joint venture's territory.
"The transaction is a major step forward for Boral and our vision is to create a world-leading interior linings business in Asia, Australasia and the Middle East," said Boral's CEO & Managing Director, Mike Kane.
The joint venture will be owned 50% by Boral and 50% by USG. In order to achieve an interest of 50% in the joint venture, USG will pay Boral up to US$575m in tranches. It will have a wallboard production capacity of 633Mm2/yr. The joint venture is expected to be completed by January 2014.
Management of the joint venture will be shared between Boral and USG with Frederic de Rougemont from Boral Gypsum who is appointed as CEO and Paul Monzella from USG Corporation who is appointed as CFO. USG will appoint the Chairman, Jennifer Scanlon, with the right to appoint chairman alternating between USG and Boral every two years.
