Grafton takeover deal gets go-ahead

SHARES in Grafton surged 8% yesterday after the building materials and DIY group finally got the go-ahead for its takeover of smaller rival Heiton.

The markets reacted favourably to the news that the State competition watchdog had backed the deal, attaching just two conditions. Grafton said yesterday it had secured the support of 92% of Heiton shareholders and that the takeover would proceed as planned. It urged remaining Heiton shareholders that had not yet accepted its offer to do so “without delay”.

Grafton chairman Michael Chadwick said the deal would create an Irish group that would be big enough to compete against major international operators, both here and abroad. “Heiton Group is an excellent strategic fit with Grafton’s Irish and British operations,” said Mr Chadwick, who owns nearly 10% of Grafton.