James Hardie Industries (JHX.AU) saw its stock price plummet by 5.48% in Friday's trading session, as investors reacted negatively to the company's recent acquisition of AZEK, a faux timber decking company. The deal, which has been described by some as a "great heist," has raised significant concerns among shareholders and market analysts.

The acquisition, initially presented as a strategic move, is now being scrutinized for its potential negative impact on James Hardie's investors. Critics argue that the deal involves using the company's cash and lower-multiple scrip to overpay for AZEK, a firm that reportedly generates inferior returns on capital. Moreover, the acquisition is said to offer minimal cost synergies, further fueling skepticism about its value to shareholders.

Perhaps more alarmingly, some observers suggest that the true motive behind the acquisition may be to facilitate James Hardie's escape from Australian jurisdiction. This move could potentially limit shareholders' ability to impose restrictions on executive remuneration and prevent management from entrenching themselves. The controversy surrounding this deal and its implications for corporate governance appear to be the primary drivers behind the significant drop in James Hardie's stock price, as investors reassess the company's direction and management priorities.