CSR confirms $4.3bn takeover bid from Saint-Gobain

The news: Construction products firm CSR Limited has confirmed a takeover bid from French building materials giant Saint-Gobain and said its board had resolved to pursue the proposal.

The numbers: Saint-Gobain has offered $9 per share for CSR, valuing the Australian company at $4.3 billion. CSR shares closed 17.4% higher at $7.95 on Wednesday on speculation of the bid following media reports.

The context: CSR said the current offer comes after an earlier indicative bid and a period of negotiation, which included the "provision of value impacting due diligence".

The company said it is providing Saint-Gobain with confirmatory due diligence access to progress the deal, but added that there is no certainty the conditional, non-binding proposal will result in a binding offer. CSR has appointed UBS Securities Australia and Herbert Smith Freehills as financial and legal advisers, respectively.