Boral Limited (ASX:BLD) is forging ahead with a potential $2 billion sale of its US building products unit after appointing Bank of America to advise on a deal amid mounting shareholder pressure for a divestment. Boral said in October 2020 it would consider offloading its US building products businesses after receiving interest from suitors, depending on performance. Sources told The Australian the appointment of the investment bank was a clear signal Boral was now looking for a sale in 2021 in a process that could fetch the Sydney-based company $2 billion given the current strength in the US construction market. Shareholders including its largest investor, the Kerry Stokes-controlled Seven Group, have been pushing for it to offload its underperforming US division to unlock value for investors, particularly after it took a hefty $1.2 billion write down at its results, underlining the loss of value in the business. Boral is understood to be moving towards receiving formal offers from bidders. If it does sell US assets, it will mark yet another retreat by an Australian company from an offshore foray since Headwaters was acquired for $3.5 billion in late 2016. The mandate win for Bank of America saw the firm draw on its strong credentials and relationships in the US, and pip Macquarie Capital which had been Boral’s long-time adviser. Other US investment banks had also been jostling for the advisory role. The Australian’s Dataroom column revealed in October that Bank of America was in a strong position to win the sell-side Boral role. Bank of America is also close to Boral’s new Chief Executive Officer Zlatko Todorcevski, given his former role as Brambles’ Chief Financial Officer. The logistics group used Bank of America as a strategic adviser. Morgan Stanley upgraded Boral to overweight on January 14, 2021, saying further transformation was to come, including potential asset sales. “Boral has flagged an intention to test the market in 2021 and we believe that a favourable outcome could represent meaningful valuation upside for Boral,” the broker said. Cost-out initiatives and strengthening markets including momentum in housing may deliver a strong result for the company. The construction player said in October it would also look at new supply options for its fly-ash business, championed by Mr. Kane, due to the decline of coal-fired power plants in the US. It remains open to a divestment of fly-ash in addition to building products but said one buyer was unlikely to scoop up both. As Boral gets a sales process under way, investment bankers and lawyers are gearing up for a busy 2021 for takeovers and divestments.