Shares of James Hardie Industries (ASX:JHX) plummeted 11.20% in Monday's pre-market trading session, following the company's announcement of a major acquisition. The significant drop reflects investors' immediate reaction to the building products manufacturer's bold move in the U.S. market.

James Hardie revealed plans to acquire New York-listed Azek Co. for $8.75 billion in a cash and stock deal. According to the agreement, Azek shareholders will receive $26.45 in cash and 1.0340 ordinary shares of James Hardie for each Azek share they hold. This transaction will result in James Hardie listing on the New York Stock Exchange, marking a significant expansion of its presence in the U.S. market.

The sharp decline in James Hardie's stock price suggests that investors may have concerns about the deal's valuation or potential risks associated with such a large acquisition. However, the combination of these two companies is positioned to create a leading building products growth platform, which could potentially strengthen James Hardie's market position in the long term. As the market digests this news, investors will be closely watching for more details on how the company plans to integrate Azek and leverage this acquisition for future growth.