The James Hardie and Azek merger makes no strategic sense
In what universe does the James Hardie and its merger with Azek make any strategic sense? The reasons given are spurious at best and read like something out of comedian Rob Sitch's television show Utopia. Every cliché has been rolled from cultural alignment to revenue synergies.
The best companies – the good to great ones – almost always focus on one industry, or one niche product group within an industry, and are relentless in developing and protecting their competitive advantage. They focus on one space and own it. From the Coca-Cola Company to Cochlear it is sticking to your knitting and staying within your core area of competence that is the hallmark of most great and enduring companies, the companies that deliver excellent long-term compounding returns for shareholders.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
7NEWS
4 days ago
- 7NEWS
Brisbane cracks open $75m mega Coca-Cola canning line to quench energy drink thirst
With energy drink demand bubbling over, Coca-Cola Europacific Partners (CCEP) has poured $75 million into a new mega canning line in Australia. The state-of-the-art production line at the company's Richlands site in Brisbane, Queensland, was recently opened — and unveiled a rare glimpse inside the factory. WATCH THE VIDEO ABOVE: Coke's largest canning line unveiled in Brisbane. If canning at full capacity, the new line pumps out 2,000 cans per minute, 120,000 per hour, and nearly three million each day. It is set to keep up with the nation's craving for high-caffeine drinks such as Monster and Mother, as well as fizzy favourites such as Coca-Cola, Sprite and Fanta. 'This is a landmark moment for our operations in Australia,' CCEP Australia managing director Orlando Rodriguez said. 'Richlands is our largest manufacturing site in our Australian network, and now it's home to our most efficient and largest canning line to date in our global network — bolstering Queensland 's thriving manufacturing industry and supporting Aussie jobs.' The 18-month build provided work for more than 250 local contractors and the new line has already created 18 full-time jobs. 'It's a real win for Queensland manufacturing and a real win for local jobs, ' CCEP Australian director of manufacturing Tom Scheibling said. 'It really is a major investment in our people here in Richlands.' Rodriguez said the investment reflects the company's commitment to local production and reducing environmental impact. 'Our philosophy is centred on making it where we sell it — reducing the distance our products travel, cutting emissions and keeping shelves stocked more efficiently.' The new line is as smart as it is speedy, using room-temperature can filling to slash energy use by 23 per cent compared with older lines. A boosted water treatment system ups water efficiency by 67 per cent. Coca-Cola drinks have been made in Australia for nearly 90 years. The company now employs more than 3,000 people nationwide — more than 700 of them in Queensland.
AU Financial Review
6 days ago
- AU Financial Review
James Hardie's merger to deliver Azek CEO $30m
The chief executive of outdoor decking group Azek will be entitled to more than $30 million if the controversial $14 billion takeover by building materials giant James Hardie proceeds, new documents show. The documents outline that the $US19.4 million ($30.1 million) payout will be made because Azek chief executive Jess Singh's role will become redundant if the merger is approved by shareholders in the United States next month.
AU Financial Review
7 days ago
- AU Financial Review
James Hardie's controversial merger sees Azek CEO granted $30m payout
The chief executive of outdoor decking group Azek will be entitled to more than $30 million if the controversial $14 billion takeover by building materials giant James Hardie proceeds, new documents show. The documents outline that the $US19.4 million ($30.1 million) payout will be made because Azek chief executive Jess Singh's role will become redundant if the merger is approved by shareholders in the United States next month.
