The Australian Competition and Consumer Commission (ACCC) has approved the sale of Wagners Construction Materials, which will see Boral pick up Wagners? quarry, concrete and related assets, with a number of parcels of land that may be used for future development.
Approximately 275 Wagners employees will join Boral through the sale.
The deal, however, doesn?t include the acquisition of a 60 per cent stake in a fly-ash joint venture as specified in the terms of the original transaction, which was amended after discussions with the ACCC. A supply agreement between Boral and the joint venture has been struck instead.
Due to the rejigged transaction, Wagners? purchase price was reduced by $10 million to $163 million.
According to Agg-net, the deal will significantly expand Boral?s reach in a growing market.
?The acquisition is an exciting investment in our core Australian construction materials business,? said Boral chief executive Mark Selway. ?Wagners Construction Materials are an excellent addition to our existing business, adding high quality assets and market positions in attractive growth areas of Queensland.?
Despite the sale, Wagners will retain its cement grinding plant in Brisbane, which will support Boral?s cement supply.
The takeover is due to be finalised by the end of the month.
SOURCE: AGG-NET, The Sydney Morning Herald