Shares of GCP Applied Technologies Inc (NYSE: GCP) opened nearly 15% up on Monday after the chemical company signed a definitive agreement to be acquired by Compagnie de Saint Gobain SA (EPA: SGO).
GCP shareholders are yet to approve
The French multinational will spend $2.30 billion in cash to acquire GCP that translates to $32.00 per share – an 18% premium on where the stock closed on Friday. The Board of both companies has unanimously approved the business combination.
Upon meeting customary closing conditions, including antitrust approval, the transaction is expected to complete in the back half of 2022. GCP shareholders are yet to give the green signal for the deal as well.
RBC Capital Markets is serving as financial advisor for GCP, and Latham & Watkins will serve as its legal counsel for the deal. Products of this company headquartered in Massachusetts have been used to build some of the world’s most renowned structures.
GCP chief executive Simon Bates’ remarks
In the press release, CEO Simon Bates of GCP Applied Technologies said the agreement with Saint-Gobain opened new doors for future growth and created a lot of value for shareholders.
We are thrilled for GCP to join Saint-Gobain, the ideal strategic partner to support our growth. Thanks to its global platform, significant resources and commercial and innovation expertise, Saint-Gobain is perfectly positioned to ensure success of GCP’s operations and people over the long term.
Saint-Gobain CEO Benoît Bazin also reiterated on CNBC’s “Squawk Box Europe” that the acquisition was “fully aligned with our strategy to be a worldwide leader of light and sustainable construction.”
Shares of Courbevoie headquartered company closed up more than 2.0% on Monday.
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