Saint-Gobain announced on Monday the definitive purchase of its Australian counterpart CSR Limited for an enterprise value of 4.5 billion Australian dollars (2.72 billion euros).

The French building materials group has reached an agreement to "strengthen its presence in high-growth Asia-Pacific markets", with the cash acquisition of all outstanding shares in CSR, for A$9 per share.

The price represents a premium of around 7.4% to CSR's last share price.

"CSR will naturally be consolidated in Saint-Gobain's country organization as the entity operating the Group's activities in Australia and New Zealand within the Asia-Pacific Region," explains Saint-Gobain in a release.

Founded in 1855, CSR is one of Australia's oldest companies. Initially a sugar refiner, it diversified into building products.

The transaction, unanimously recommended to shareholders by the Australian company's board of directors, is expected to be completed in the second half of 2024.

Negotiations between the two groups were announced on February 21, sending CSR shares soaring.

(Written by Gaëlle Sheehan, with Sudip Kar-Gupta)