In today’s briefing:
- James Hardie (JHX AU)/Azek (AZEK US) Merger: Risky, Expensive, And Poor Governance
- Glencore: Initiation of Coverage
James Hardie (JHX AU)/Azek (AZEK US) Merger: Risky, Expensive, And Poor Governance
- On the 24th March, building materials outfit James Hardie Industries Plc (JHX AU) announced a cash/scrip merger with decking manufacturer Azek (AZEK US).
- JHX is offering 1.034 new JHX shares plus US$26.45/share in cash for each Azek share, or an implied $56.88 all-in price (at the time), a punchy 37.4% premium to undisturbed.
- Apart from pushback on pricing for Azek, JHX shareholders have voiced opposition over the ASX granting a waiver, allowing the merger to proceed without a vote from JHX shareholders
Glencore: Initiation of Coverage
- Glencore PLC’s 2024 financial results reflect a robust operational year, with the company reporting an adjusted EBITDA of $14.4 billion, indicating strong performance across its industrial and marketing segments.
- The industrial segment achieved an adjusted EBITDA of $10.6 billion, primarily driven by a healthy metals business despite challenging conditions in the metallurgical market.
- The recent integration of the EVR coal business contributed significantly, adding $1 billion to EBITDA in the latter half of the year.
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