CRH's €1.6bn sale plan in Europe engenders tepid reaction from investors

CRH’s confirmation of its intention to sell its European distribution business for more than €1.6bn has met a lukewarm response from investors despite the likelihood of more money being returned to them as a result.

Shares in the Irish cement and building materials group rose by just over 2% in both Dublin and London on the confirmation it has agreed to sell the distribution business to funds managed by private equity giant Blackstone for €1.64bn in cash. Reports of the deal - which requires regulatory approval - began to circulate on Monday afternoon.