CRH may have to raise offer for Egyptian firm

CRH may have to raise its offer to ensure success in its bid for Egyptian cement group Misr Beni Suef. The Irish group has already offered €178 million for the company, which has about 5 per cent of the growing Egyptian market.

CRH, which has been looking to expand in the eastern Mediterranean region, has already lost out on two attempts to break into Egypt. Shares on the cement sector of the Egyptian stock exchange rose against the trend on Friday as stories circulated of an impending higher bid from the Irish group, which has been in exclusive negotiations with Misr Beni Suef since June.

A spokesman for CRH said last night that the company refused to comment on market speculation.

Misr Beni Suef is partially listed but 60 per cent of the shares remain in private hands. It is thought CRH would want to control at least 75 per cent of the company before closing any deal.

The offer on the table largely comprises the assumption of debt at the Egyptian group, which is building a 1.4 million tonne cement plant south of Cairo. Completion of that plant is another condition of any deal.

CRH first broke into the region with the purchase last year of a 25 per cent stake in Nesher Cement, the only producer in Israel and Palestine.