CRH confirms interest in cementmakers’ assets

CRH yesterday confirmed that it is in discussions with Lafarge and Holcim regarding the potential acquisition of certain assets being disposed of by the cementmakers in advance of their proposed merger.

The buildings materials group’s spokesperson stated: “While there can be no certainty that these discussions will result in a transaction, if an acquisition was to proceed, it is likely that it would be funded through a combination of existing cash balances, debt and an equity placing. At this stage, there can be no certainty that these discussions will lead to any transaction.

“A further announcement will be made if and when appropriate.”

CRH is said to be the leading bidder for the assets that cementmakers Holcim and Lafarge need to sell ahead of their planned €35bn merger, according to sources. CRH submitted the best offer so far of about €6bn.

Groups led by Blackstone and CVC Capital Partners also submitted bids .

On the Iseq yesterday, CRH shares closed up just over 2% at €21.29.

A deal would allow the Irish firm to move into new markets and expand its presence in existing ones.

CRH already operates in 35 countries with about 76,000 people and has about €18bn in sales.

* Additional reporting by Bloomberg