CRH Acquisition Cleared for Takeoff: A$2.1B Deal Bolsters Australia Presence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 14 2024
0mins
Source: Benzinga
- CRH Acquisition of Adbri Ltd: CRH plc's shares are trading lower after receiving approval from Adbri's independent shareholders for the acquisition by CRH and the Barro Group.
- Deal Details: CRH will purchase the remaining 57% of Adbri's ordinary shares not held by Barro for A$3.20 per share in cash, with a total equity valuation of $1.4 billion.
- Approval and Timeline: The Scheme Meeting on June 12, 2024, and Court approval on June 14, 2024, have cleared the way for the deal to close on July 1, 2024.
- Strategic Rationale: CRH sees Adbri as an attractive business with high-quality assets that complement its core competencies in cement, concrete, and aggregates, providing growth opportunities in Australia.
- Financial Position and Investment Opportunities: CRH ended the first quarter of FY24 with strong cash reserves and undrawn facilities, and investors can access CRH shares through ETFs like Invesco Building & Construction ETF PKB and Fidelity MSCI Materials Index ETF FMAT.
Analyst Views on CRH
Wall Street analysts forecast CRH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRH is 142.05 USD with a low forecast of 131.00 USD and a high forecast of 164.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 121.000
Low
131.00
Averages
142.05
High
164.00
Current: 121.000
Low
131.00
Averages
142.05
High
164.00
About CRH
CRH PLC is an Ireland-based company. The Company manufactures and distributes a diverse range of superior building materials and products, which are used in construction projects of all sizes. It operates in three segments across two divisions. Its divisions include Americas and International. Its Americas Division comprises two segments: Americas Materials Solutions and Americas Building Solutions. Americas Materials Solutions provides building materials for the construction and maintenance of public infrastructure and commercial and residential buildings in North America. The primary materials produced by this segment include aggregates, cement, readymixed concrete and asphalt. Americas Building Solutions manufactures, supplies and delivers solutions for the built environment in communities across North America. Its International Division, which comprises one segment, International Solutions, is a provider of integrated building solutions primarily across Europe and Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
