Owens Corning and Saint-Gobain have merged their reinforcement arms to create new global company
American-based building materials firm, Owens Corning and French company Saint-Gobain have announced they are merging their reinforcements businesses.
The new company will be known OCV Reinforcements and will provide an extended product range and have a larger presence in the market. The two companies began discussions about a possible merger of their reinforcement sectors in July 2006.
The agreement, which was signed on February 20, states that 60% of the company will be owned by Owens Corning and the remaining 40% by Saint-Gobain. The latter will have the chance to sell its stake after a period of four years.
The merger will create a global reinforcements company and composite fabrics products with worldwide revenues of around $1.8bn (£920m) and 10,000 employees.
The transaction has been approved by the board members of both companies and is expected to close in mid 2007.