CRH, the Irish building materials and services giant, has agreed to buy Swedish construction group NCC Industry’s operations in Denmark and Finland for an undisclosed sum.
NCC’s Danish network of asphalt plants, land- and marine-based aggregates sites, together with its substantial high-quality reserves, will significantly expand CRH’s presence in the market and its exposure to demand from big road, infrastructure and industrial projects, said CRH.
The group’s reserve-backed hard-rock quarries, backfilling and recycling operations in Finland will complement CRH’s existing operations in that market.
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“This acquisition is strongly aligned with CRH’s strategy to build an aggregates-led, connected portfolio aligned with growing infrastructure megatrends,” said Peter Buckley, president of CRH International, the group’s operations outside of the Americas.
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“NCC Industry’s extensive operating footprint and strong customer relationships in Denmark and Finland will strengthen our business in the Nordics, enhancing our ability to support customers across key high-growth urban markets and infrastructure end-segments.”
The transaction remains subject to applicable approvals and customary closing conditions. Completion is expected during 2027.
CRH’s shares have fallen by a third so far this year in New York, leaving it with a market value of $55.1 billion (€49.1 billion), amid concerns about the global economy and the extent to which central banks will need to raise interest rates to rein in inflation that’s been fuelled by the Middle East conflict.
In June, CRH agreed to buy US peer Arcosa in a deal worth $8.5 billion (€7.4 billion), which would make it the Irish group’s largest purchase to date.
Arcosa is a leading aggregates company and maker of critical infrastructure products, which, CRH says, would be “highly complementary” to CRH’s existing business. The value of the deal includes both Dallas-based Arcosa’s equity and debt.
CRH chief executive Jim Mintern set out a strategy 13 months ago for CRH to spend $40 billion on investment and cash returns to shareholders over five years as it continues to grow revenues and earnings apace. Some $28 billion was earmarked for investment.
