CRH

Sector deal activity gaining pace

  • Sectors : Building Materials
  • Companies : CRH

Ratings and price correct at time of issue.

  • CRH

    Closing Price: 5307c

  • RATING 23/05/12

  • PREVIOUS RATING 12/01/12

    NEUTRAL

DAVY VIEW

Acquisition activity is picking up at pace in the Building Materials and Products sector. Vulcan Materials yesterday (June 7th) announced that it will acquire US Concrete, while Nucor will buy Cornerstone’s insulated metal panels unit. That follows similar sector deals from Martin Marietta (HeidelbergCement West) and Saint-Gobain (Chryso) in recent weeks. More deals are likely as corporate balance sheets are in good order and risk appetite is clearly growing. CRH, likewise, has significant available firepower for acquisitions and is likely to be opportunistic. We expect the group will step up deal flow — but not at any price.

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Jun 8 2021, 07:30 IST/BST

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