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Chicago’s USG accepts $7 billion takeover offer from Knauf

USG Corp. has agreed to a $7 billion takeover offer from rival building products manufacturer Knauf. | USG.com

German building materials maker Knauf is buying American building products maker USG in an approximately $7 billion deal.

Gebr. Knauf KG will pay $44 per USG share. That includes $43.50 per share in cash payable once the transaction closes and a special dividend of 50 cents per share that would be paid after shareholders approve the deal.

Berkshire Hathaway and its subsidiaries, which own about 31 percent of USG’s outstanding stock, have agreed to vote in favor of the transaction.

USG in March rejected an offer of $5.9 billion, saying it significantly undervalued the construction materials company.

USG will keep its headquarters in Chicago.

The deal is expected to close early next year.