Holcim deal may boost CRH share price 24%

Analysts are signalling a near-24% jump in CRH’s medium-term share price on the back of it completing the purchase of certain assets from Swiss and French cement firms Holcim and Lafarge, and those assets making some contribution to the group’s current financial year.

The Dublin-headquartered building materials giant is spending €6.5bn on assets in Europe, the Americas, and Asia which need to be sold to facilitate the mega-merger between Holcim and Lafarge. With shareholder and regulatory approval received, CRH this week announced that its offer had been accepted by the sellers, who are now legally bound to the terms of the agreement.

The formal conclusion of the wider Holcim/Lafarge merger is expected during July and CRH’s element of the transaction is anticipated to be completed the following month, which would allow the group four months of contribution from the buys in its current financial year. However, it is expected that the publication of CRH’s first-half results, in August, will be too early to update on possible synergies from the new assets, which are currently being held by a trustee until formal conclusion of the transactions.