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Beacon Roofing rejects QXO's $11 billion takeover bid By Reuters


By Anshuman Tripathy

(Reuters) – Beacon Roofing Supply on Wednesday rejected an $11 billion takeover offer from QXO, a new player in the building materials distribution business, saying its proposal “significantly undervalues” the roofing material supplier.

Earlier on Wednesday, QXO CEO and billionaire Brad Jacobs announced a $124.25 share offer for Virginia-based Beacon and threatened a proxy fight at the takeover target after months of speculation. attempt to reach an agreement.

QXO, which counts President Donald Trump's son-in-law Jared Kushner as a board member, is looking to enter the large but fragmented building materials distribution business.

This industry, worth $800 billion, includes various products such as roofing supplies, insulation and other building components.

Shares of QXO fell 1.6% in afternoon trading on Wednesday, while shares of Beacon hit a record of $121.22 but fell short of the offer price of $124.25 per share.

The offer price represents a 26% premium to Beacon's closing price on November 15, the last trading day before reports of QXO's approach emerged.

Jacobs said he and QXO CFO Ihsan Essaid first went to Beacon in July and made several attempts to reach an agreement but were met with “delays, cancellations, and unreasonable pre-contracts, especially stalling ' long term '”.

Beacon responded Wednesday saying it offered “multiple times” to engage, including price considerations, subject only to a “customary nondisclosure agreement.”

“We are willing to name directors on the Beacon Board. We believe that your shareholders have the right to evaluate our proposal,” said Jacobs, whose net worth is pegged at $9.3 billion by Forbes.

© Reuters. FILE PHOTO: US 100 dollar notes are seen at a bank in this photo in Seoul September 20, 2011. REUTERS/Lee Jae-Won/File Photo

Beacon, with a market value of $6.74 billion, is the largest publicly traded distributor of roofing and component building materials in the U.S. and Canada, according to its website.

QXO has about $5 billion of cash on hand and has received enough financing commitments to pay 100% of the purchase consideration, Jacobs said.





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