ACCC forces Knauf Divestment for USGBoral Acquisition.
The ACCC has approved Knauf’s acquisition of USG subject to asset divestments. The ACCC’s review focused on competition for the supply of plastboard, joint plaster compounds and treatments, metal profiles, insulation etc.
USG has a presence in Australia through its USG-Boral joint venture, which the ACCC says competes with Knauf and with Armstrong World Industries. The commission requires Knauf to divest USG’s interest in the joint venture, either entirely or just in Australasia, to a buyer approved by the ACCC. If divestiture of the joint venture interest is not achieved within a certain period, Knauf has agreed to divest certain other assets.
Source: Global Gypsum staff – 29 March 2019