Displaying items by tag: Ireland
Ireland: CRH is paying Euro700m 'over the odds' for a Euro6.5bn acquisition that would make it the world's third-biggest building materials supplier, according to a report from US-based AllianceBernstein (AB), a global asset management company.
CRH has agreed to buy a number of mostly European assets from Lafarge and Holcim for Euro6.5bn so the merging companies can get competition clearance for their plan to create the cement industry's biggest company. However, AB has raised doubts about the value of the deal for CRH. The move was also was overwhelmingly approved by shareholders at a recent extraordinary general meeting.
In a detailed report into the deal, AB said that the move represented "A step in the wrong direction for CRH. The acquisition price of Euro6.5bn is 12% above our Euro5.8bn estimate of the fair value of the assets."
CRH assumes LafargeHolcim merger will proceed
19 March 2015Europe: Ireland's CRH is assuming that the LafargeHolcim merger will still happen, according to CRH chief executive Albert Manifold. "At this moment in time, we're working forward on the basis that the deal will close, the merger will happen," said Manifold. He added that he had spoken to both companies on 19 March 2015.
CRH has agreed to buy a number of mostly European assets from Lafarge and Holcim for Euro6.5bn so that Lafarge and Holcim can get antitrust clearance for their plan to merge. According to Reuters, CRH's shareholders voted to approve the acquisition on 19 March 2015 at its extraordinary general meeting. According to Manifold, the CRH vote was a procedural step that had to be done, regardless of the uncertainty at Lafarge and Holcim, as a failure to approve the asset purchase would have left CRH exposed to a potential Euro158m break-up fee.
Manifold also confirmed that if the merger should fail, the break-up fee would apply in the other direction. "Likewise, if other parties don't conclude this deal for whatever reason, we would then be in receipt of a break fee," said Manifold. "I'm not going to speculate on whether it is or isn't going to happen. There are discussions going on to decide what they want to do over the next couple of days," said Manifold, adding that CRH was interested in buying the assets even if the merger falls through.
According to CRH, the LafargeHolcim assets would transform CRH into the world's third-largest building materials supplier, the biggest in central and eastern Europe, and double its presence in emerging markets. CRH makes about half its sales in the US and wants more exposure to new markets such as the Philippines and parts of Europe it believes are beginning to recover.
Manifold said that CRH also has its eye on other acquisitions, should the purchase of Lafarge and Holcim assets fall through. "This deal is an important part of the strategy of CRH, but it is not the strategy of CRH," said Manifold.
Ireland: CRH expects to receive regulatory decisions on a Euro6.5bn purchase Holcim and Lafarge operations as soon as March 2015. CRH chief executive Albert Manifold said that the acquired facilities would help CRH to expand in both North America and Europe, where it sees opportunities to expand its business.
"There are significant building needs and funding going to countries like Poland, Slovakia and Romania," said Manifold. He added that construction growth in those countries could be as high as 4%/yr over the next 10 years. Manifold said that CRH had already begun discussions with regulators in the various markets and expected decisions in March and April 2015. The acquisitions require the approval of CRH shareholders and an extraordinary shareholders meeting has been scheduled for 19 March 2015 for this purpose. Manifold said that CRH would continue to trim its portfolio and make further acquisitions.
CRH confirms interest in LafargeHolcim divestments
23 January 2015Europe: Responding to the recent press speculation, Ireland-based building materials group CRH plc has confirmed that it is in discussions with Lafarge and Holcim regarding the potential acquisition of certain assets being disposed of by Lafarge and Holcim in advance of their proposed merger.
In December 2014, The European Commission, the European Union's antitrust authority, said that it approved the proposed merger of French cement giant Lafarge SA with Swiss peer Holcim Ltd, subject to asset sales by both companies in regions where their activities overlap.
The European Commission or EC's approval of the merger was conditional upon the divestment of Lafarge's businesses in Germany, Romania and the UK. Holcim was required to divest its operations in France, Hungary, Slovakia, Spain and the Czech Republic.
CRH reports Euro190m in 2014 acquisition and investment spending
09 January 2015Ireland: CRH has revealed a 2014 acquisition and investment spend of Euro190m, reflecting the completion of 21 transactions. On the divestment front, the group completed 16 transactions and realised total disposal proceeds of Euro350m.
"In August 2014 we announced a multi-year Euro1.5 – 2.0bn divestment programme; the proceeds of Euro350m generated in 2014 demonstrate that this programme is well underway," said Albert Manifold, CRH chief executive. "With a refined portfolio focus, the group is now well-positioned to pursue acquisitions that are in line with our long-term growth strategy. The 21 transactions completed during 2014 primarily comprise bolt-on acquisitions for our existing operations in the Americas, together with the expansion of our builders merchanting network in Europe."
The disposal of CRH's 50% equity stake in Denizli Çimento, its only involvement in Turkey, was the largest single divestment in 2014, realising proceeds of Euro170m.
Ireland: Ireland-based building materials group CRH will sell its clay brickwork division for up to Euro760m in order to bid for cement assets that are to be sold as part of the LafargeHolcim mega-merger. London-based sources have said that the Dublin-based company had hired bankers from JP Morgan to find a buyer for the division.
CRH is believed to be interested in all of the assets Lafarge and Holcim have up for sale, including subsidiaries in Canada and Brazil. LafargeTarmac, the largest cement maker in the neighbouring UK, is also up for sale as part of the LafargeHolcim divestment package. There are Euro5bn of assets for sale in total.
The disposal could be one of the first big changes by CRH's new chief executive, Albert Manifold. He was promoted in January 2014 after the retirement of Myles Lee, who had spent 32 years at the company. Several private equity firms are thought to be interested in the clay brick division. Bankers said that it was likely to fetch Euro630-760m.
CRH reports strong results in the first half of 2014
19 August 2014Ireland: CRH, the international building materials group, has reported its results for the first six months of 2014, which ended on 30 June 2014. Sales revenues increased by 4%, including 7% growth in Europe and 1% growth in the Americas. Like-for-like sales were up by 5%. Earnings before interest, tax, depreciation and amortisation (EBITDA) were 27% higher than in the first half of 2013. Euro130m was invested during the first half of 2014, while net debt fell from Euro4.2bn in the first half of 2013 to Euro3.7bn in 2014.
CRH expands business in Europe
08 May 2014Ireland: Ireland's CRH expects earnings to rise in 2014 after revenues grew sharply in its struggling European business in the first four months of the year.
The company said that sales rose by 10% in Europe to the end of April 2014, driven by better weather conditions and improving underlying market conditions. In the US, cold weather hit early season activity, however, stronger housing activity and a strengthening economic background saw revenues rise by 2%.
"In Europe, the good start to the year in much more favourable weather conditions is encouraging. While we continue to expect second-half performance to be ahead of 2013, we believe that the strong year-to-date rate of organic growth is likely to moderate," said CRH.
The company said that it expects earnings before interest, taxes, depreciation and amortisation (EBITDA) in the seasonally less significant first half of 2014 to rise to Euro500m from Euro400m in 2013. Earnings in the second-half of 2014 should be somewhat ahead of 2013. CRH also said that it had seen limited impact on trading to date from the political unrest in Ukraine, one of its main European markets, where cement sales volumes were up by 30%. However, the outlook remains uncertain.
After announcing a review of its portfolio in 2013, CRH said in February 2014 that it would sell 45 businesses representing 10% of net assets and would continue to keep a watch on other operations accounting for 20% of its assets. On 7 May 2014 CRH announced that it was assessing another selection of businesses that account for a further 10% of its net assets, where the returns potential was not yet clear. The review will be completed in the third quarter of 2014.
CRH announces non-executive board appointment
25 February 2014Ireland: The Board of Cement Roadstone Holdings (CRH) has announced that Henk Rottinghuis has been appointed as a non-executive director of the company.
Rottinghuis, aged 58, is a Dutch citizen with a background in distribution, wholesale and logistics. He was until 2010 Chief Executive Officer at Pon Holdings BV, a large, privately held international company that is focused on the supply and distribution of passenger cars, trucks and equipment for the construction and marine sectors.
Rottinghuis is currently the Chairman of the Supervisory Board of Stork Technical Services which provides asset management services to the oil and gas, power and chemical industries. He is also a member of the supervisory boards of the Royal Bank of Scotland NV and the retail groups Blokker Holding BV and Detailresult Groep.
Ecocem releases carbon roadmap
09 October 2013Ireland: Ecocem has accused the Irish cement industry of failing to align its CO2 emissions with the European Union carbon 2050 roadmap. The producer of GGBS (Ground Granulated Blastfurnace Slag) cement made the comments in a document detailing its response to the Irish government's Climate Action and Low-Carbon Development Bill 2013. The EU carbon roadmap suggests cutting emissions in Europe by 80% below 1990 levels by 2050.
In its document Ecocem also attacked the European Union's Emissions Trading Scheme (ETS), saying that it provided strong incentives against promoting decarbonisation of the cement sector. It added that a transition to a low-carbon cement and concrete industry could create up to 1200 new jobs within five years.
Ecocem says its product has a carbon footprint of 19kg of CO2 per tonne of cement, compared with about 750 kg of CO2 per tonne it says is produced by the traditional Irish cement sector.