10-16-2013 11:14 PM

Australia's Boral shares surge after annnouncing plasterboard JV

SYDNEY | Wed Oct 16, 2013 7:14pm EDT

(Reuters) - Shares in Australian building materials maker Boral (BLD.AX) jumped as much as 8 percent on Thursday after it announced a $1.6 billion plasterboard joint venture with its U.S. peer USG Corp (USG.N).
The joint venture will be owned 50 percent by Boral and 50 percent by USG, for which USG will pay up to $575 million to Boral, according to statements by the two companies.
Boral shares were up 6.7 percent at A$5.07 at 2306 GMT, after hitting a 7-month high of A$5.12 earlier. USG shares closed down 1.3 percent at $27 on Wednesday.
(Reporting By Maggie Lu Yueyang; Editing by Paul Tait)

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