Sunday 25 September 2016

CRH shares rise on rumours of €800m South Korea cement deal

Tara Cunningham

Published 12/06/2015 | 08:54

Albert Manifold, chief executive officer of CRH Plc, speaks during a Bloomberg Television interview in London, U.K., on Tuesday, Aug. 19, 2014. CRH, the biggest company on the benchmark Irish stock index, said it may spend as much as 1.5 billion euros ($2 billion) on acquisitions over the next 18 months, after the building-materials supplier reported a 27 percent increase in first-half earnings. Photographer: Chris Ratcliffe/Bloomberg
Albert Manifold, chief executive officer of CRH Plc, speaks during a Bloomberg Television interview in London, U.K., on Tuesday, Aug. 19, 2014. CRH, the biggest company on the benchmark Irish stock index, said it may spend as much as 1.5 billion euros ($2 billion) on acquisitions over the next 18 months, after the building-materials supplier reported a 27 percent increase in first-half earnings. Photographer: Chris Ratcliffe/Bloomberg

Four months after announcing the biggest deal in its history, CRH soared amid speculation it will make a bid for a Korean cement company.

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According to reports Irish building materials company had hired Goldman Sachs to bid for Tongyang Cement and Energy, the second largest cement producer in South Korea.

A 74pc stake in the distressed Korean business was put up for sale in April and analysts have said CRH, Ireland's biggest company, could pay up to $900m (€800m) for it.

The bid speculation came just weeks after CRH legally agreed terms of its acquisition of assets from Holcim and Lafarge for €6.5bn.

The deal, which is expected to be completed in the second half of the year, will turn it into the world’s third-biggest building materials supplier.

Robert Eason, of Goodbody Stockbrokers, believes CRH “has the scope to continue to take part in M&A”, pointing to comments made by Albert Manifold, the chief executive. “He noted the acquisition pipeline was quite strong across the businesses,” Mr Eason said. The company's stock closed up 43p yesterday, or 2.3pc, at £18.85.

Telegraph.co.uk

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