Investing.com -- The Azek Group LLC, a Chicago-based manufacturer of outdoor living and building products, is set to be acquired by James Hardie (NYSE: JHX ) International Group Ltd. for a total of $8.75 billion, a figure that includes outstanding debt. In response to this planned acquisition, S&P Global Ratings has placed all its ratings on Azek, including its ’BB-’ issuer credit rating, on CreditWatch with positive implications.

The CreditWatch placement is a signal that the proposed transaction could potentially improve Azek’s credit quality. This is due to the fact that James Hardie, the acquiring company, is significantly larger and has a higher credit rating. The two companies have entered into a definitive merger agreement, with James Hardie set to acquire Azek at a rate of $26.45 per share.

The deal, however, is still awaiting approval from shareholders and the satisfaction of customary closing conditions. S&P Global Ratings anticipates resolving the CreditWatch placement once the transaction is finalized, which is expected to occur in the second half of the calendar year 2025.

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