CRH secured a foothold in Portugal's cement market today after linking up with cement maker Semapa in a deal worth €372 million.
CRH, one of the world's top four suppliers of building materials, said it was buying 49 per cent of Semapa unit Secil for €372 million in cash, including €140 million in assumed net debt. CRH said the deal would immediately enhance earnings.
It said the Portuguese cement market had endured tough years in 2002 and 2003 because of tight government fiscal policy brought about by European Union curbs on state debt, but CRH believed demand for cement was poised for a recovery this year.
CRH said Secil ran three integrated cement plants with total capacity of 4.2 million tonnes, 41 ready-mixed concrete plants and six hard rock quarries. The business would be run as a joint venture by both CRH and Semapa.
Mr Lee denied a wider merger with Semapa could be on the cards.