Saint-Gobain Shares Jump After EUR1.2 Billion Dahl Divestment Deal with Kesko
Compagnie de Saint-Gobain (SGO.PA) signed a deal to sell technical trade operator Dahl's businesses in Sweden, Norway, and Denmark to Finnish retail group Kesko (KESKOA.HE, KESKOB.HE) for a debt-free price of 1.2 billion euros.The French construction and infrastructure materials and services company's shares rose more than 5% in early Monday morning trading in Paris following the announcement, while Kesko's stock was down nearly 10% in Helsinki.The 1.2 billion-euro purchase price excludes lease commitments. Including lease commitments as of Dec. 31, 2025, would raise the price to nearly 1.52 billion euros.Kesko will initially fund the deal through a bridge loan facility, which will be later refinanced with equity and debt upon closing of the transaction. For the equity component of the financing, Kesko would consider issuing shares worth between 500 million euros and 700 million euros.The transaction, the largest in Kesko's history, would expand its presence in the Nordic heating, piping, air conditioning, and infrastructure construction markets. It would also make the building and technical trade division the company's biggest segment.Kesko Chief Executive Officer and President Jorma Rauhala said the operations "would be an excellent fit for Kesko's growth strategy and they would complement our existing building and technical trade business." With the acquisition, the company is targeting group net sales of 20 billion euros and division net sales of 10 billion euros in the early 2030s, from 12.5 billion euros and 4.7 billion euros, respectively, in 2025.The deal is expected to be finalized by the start of 2027, subject to regulatory approvals.