Saint-Gobain Accepts $1.69 Billion Bid For Glass Bottle Unit
01/17/2013| 01:45pm US/Eastern
French construction material firm Saint-Gobain SA (>> SAINT GOBAIN) Thursday said it formally accepted the $1.69 billion offer made by Ardagh Group for the U.S. unit of Verallia, the French company's bottle and jar subsidiary.
With the acquisition of the U.S. unit of Verallia, Luxembourg-based Ardagh, which makes Absolut Vodka bottles, will overtake the largest glass-bottle maker worldwide, Perrysburg, Ohio's Owens-Illinois Inc. (>> Owens-Illinois, Inc.), in its home country.
Saint-Gobain had planned to spin off its glass bottler in order to focus on its building-materials business, but deteriorating financial markets scuppered the deal. Saint-Gobain plans to sell the remaining assets of Verallia, through an initial public offering or through an outright sale, the French firm's chief executive, Pierre-Andre de Chalendar, said Monday.
The announcement of the sale boosted Saint-Gobain's share price Monday.
The sale still needs the approval of U.S. antitrust authorities.
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