Herbert Smith Freehills and Jones Day are advising on a $1.6 billion joint venture between building-materials companies Boral Ltd. of Australia and Chicago-based USG Corp.

The 50/50 joint venture, USG Boral Building Products, will combine certain parts of each company’s plasterboard businesses, as well as other assets. The deal, subject to regulatory approval, is expected to close in January.

Boral will contribute its gypsum division—gypsum is used to make plaster—which includes its plasterboard businesses in Australia and Asia. At the same time, USG will contribute its Asian and Middle Eastern gypsum and plasterboard businesses, as well as the intellectual property behind a number of building products that will be sold in the JV’s markets.

Herbert Smith Freehills Sydney partners Stephen Dobbs and Adam Strauss is leading the team advising Boral, with partners in Asia and the Middle East also playing a role.

Jones Day Sydney partners Chris Ahern and Adam Salter are acting for USG. Lawyers in the firm’s Chicago office are handling the transaction’s financing matters.

Email: tbrennan@alm.com.