Boral gets US tick on Forterra Brick tie-up

Boral has hailed approval for its US merger, flagging a more competitive business in the region.

Boral has received clearance from US regulators to merge its operations in the region with Forterra Brick.

The combination, detailed last month, is set for completion by the end of November, with longtime Boral executive Paul Samples to take the reins as chief executive of the US joint venture.

“We are pleased that the US regulator has granted merger clearance for the North American bricks joint venture to proceed, recognising that the JV provides the opportunity to create a more efficient and better positioned business to compete in the broader cladding market through the cycle,” Boral chief executive Mike Kane said.

“This is an important step in delivering Boral’s strategy in North America where we are optimising our high fixed cost businesses and growing our more variable cost, lighter weight building products portfolio so that Boral’s business can deliver stronger results through the cycle.”

The deal has previously been slated to deliver $US25 million in synergies.

At 4pm (AEST), Boral shares traded flat at $6.44.