DALLAS, Aug. 9 /PRNewswire/ -- The competitive threats associated with
globalization within the composites marketplace are beginning to force
incumbent glass fiber producers to consider strategic alternatives as a way
to compete more effectively according to "The Promise of Globalization: A
Market Assessment and Impact Analysis of the Owens Corning Acquisition of
Saint- Gobain's Reinforcement and Composites Business", a new research
report from Lucintel. Our analysts examine the rationale for Owens
Corning's and Saint- Gobain's decision to abandon its previously announced
joint venture agreement and instead embark on an acquisition of a $900
Leading up to this decision and wishing to avoid the possibly lengthy
regulatory hurdles and forced asset sales, Owens Corning and Saint-Gobain
began to assess other strategic alternatives. And on July 27, both
companies announced that they had abandoned the proposed joint-venture
agreement it signed earlier this year. Instead, Saint-Gobain has proposed a
sale of its $900 million reinforcement and composites business to Owens
Corning for $640 million.
Lucintel sees the several benefits of this acquisition falling in Owens
Corning's favor, based primarily on four key factors. In this study,
Lucintel analysts address the issue of globalization within the composites
industry and how competitive differentiation can produce successful
operating models. However, relentless execution, Lucintel details, will be
the determining factor if this acquisition will prove successful.
"The joint venture announced by Owens Corning and Saint-Gobain earlier
this year encountered some regulatory hurdles and it also embodied several
challenges that a full acquisition will avoid," said Richard Dean,
Lucintel's Director of Research, and co-author of this report. "The
decision to acquire these assets -- rather than embark on a joint venture
-- is not surprising."
"Globalization within the composites industry is a potentially
disruptive trend, particularly as overseas fiberglass producers add
significant production capacity to the marketplace," noted Dr. Sanjay
Mazumdar, CEO of Lucintel, and co-analyst on this research report. "By
acquiring Saint-Gobain's assets, Owens Corning is establishing for itself a
stronger position to counter this competitive threat."
To get a detailed table of content on this 9 page thought leadership
report, please contact firstname.lastname@example.org or call 972-636-5056 in
the US or visit www.lucintel.com. This report is published by Lucintel, a
leading global market research company and business consulting firm with
over 600 clients worldwide.