Shares in CRH (LON:CRH) have climbed nearly two percent in London this morning, as the company announced that it had moved closer to the acquisition of Ash Grove Cement, with the US group’s shareholders giving approval to the $3.5-billion tie-up. The news came after it recently emerged that the takeover target had been approached with a rival bid.
As of 10:20 BST, CRH’s share price had added 1.94 percent to 2,844.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.03 percent higher at 7,525.18 points. The group’s shares have added just under five percent to their value over the past year, and are up by about 0.5 percent in the year-to-date.
Ash Grove acquisition
CRH announced in a statement this morning that it had reached an agreement to acquire Kansas-based Ash Grove Cement for a total consideration of $3.5 billion, having received the approval of the US group’s shareholders. The transaction, however, remains subject to regulatory approval and is expected to close later this year or early 2018.
The news marks a boost for CRH after the US group recently said that it had received a preliminary, non-binding competing proposal from a third party, at an indicated enterprise value of between $3.7 billion and $3.8 billion. The rival bid, however, failed to materialise.
CRH noted that it would provide more details about the takeover alongside its trading update on November 21.
Analysts on CRH
Both Jefferies Group and Societe Generale reaffirmed the FTSE 100 group as a ‘buy’ today, with price targets of 3,190p and 3,400p on the stock, respectively. According to MarketBeat, CRH currently has a consensus ‘buy’ rating, and an average price target of 3,263.14p.