NCB recommends merger of Grafton and Travis Perkins
The broker said a merger could yield annual savings of €53 million after three years through combined purchasing, cost cuts and tax savings. NCB analyst, John Sheehan, said the deal risks would be modest as current financial markets will deter alternative buyers and none could match the synergies from a Grafton/Travis Perkins tie-up.
Dublin-based Grafton gets around 60% of revenue in Britain. Its shares have fallen 71% in the last 12 months, while Travis Perkins has dropped around 76%.
