Lafarge deal could boost earnings at CRH by 35%

CRH’s €6.5bn acquisition of certain assets offloaded by European cement giant LafargeHolcim – which completed, slightly ahead of schedule, this week – could enhance its earnings by more than 30% over the next year, it has been claimed.

“We see the deal as a transformational acquisition, which could be around 34% accretive to earnings in its first full year,” said Robert Gardiner of Davy Stockbrokers in a note yesterday.

“The group is taking advantage of its sector-leading financial strength to acquire a unique package of assets at an opportune time in the cycle. With the deal now largely complete [the Asian assets that form part of the transaction are expected to complete by the end of next month], the integration process can begin with the group looking to deliver synergy savings of €90m over three years.”