(Bloomberg) -- Australian building materials maker CSR Ltd. has agreed to a A$4.5 billion ($3 billion) takeover bid from France’s Cie. de Saint-Gobain. 

The companies entered into a definitive agreement in which Saint-Gobain offers to acquire all CSR shares at A$9 each, according to a statement on Monday. The offer represents a 33% premium to CSR’s closing price on Feb. 20, the day before Bloomberg News reported Saint-Gobain was exploring a potential acquisition of the Australian rival.

The deal is “a decisive step for Saint-Gobain to establish a leading presence in the high-growth Australian construction market,” Benoit Bazin, chief executive officer of Saint-Gobain said in the statement.

The board of CSR has unanimously recommended shareholders to vote in favor of the transaction. The deal is expected to close in the second half of 2024, following necessary regulatory approvals, Saint-Gobain said.

Saint-Gobain employs 168,000 staff and has operations in 75 countries, according to its website. In addition to construction materials, the firm says it makes windows and parts for the automotive and wider transport sector, as well as products used in other industries such as health care.

CSR was founded in 1855 and its brands include Gyprock plasterboard and Bradford Insulation, according to its website. It has 30 manufacturing plants employing 2,500 people in Australia and New Zealand that altogether generates A$2.7 billion in revenue, the company said.

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