CRH confirms talks to acquire Lafarage, Holcim assets

Dublin-based building materials group CRH has confirmed speculation that it could buy some of Lafarge and Holcim's assets ahead of their proposed merger.

Rumours, first reported by Reuters, suggested that CRH was battling against a consortium led by investment giant Blackstone for the assets and was the "front runner" having bid €6bn.

The Blackstone consortium, which includes Cinven and Canadian pension fund CPP, is reported to have tabled an offer of €5.5bn.

CRH released a statement on Thursday afternoon, noting the recent press speculation, saying: "While there can be no certainty that these discussions will result in a transaction, if an acquisition was to proceed, it is likely that it would be funded through a combination of existing cash balances, debt and an equity placing."

French cement firm Lafarge and Swiss counterpart Holcim must sell a number of assets for their proposed tie-up to go through.

The merger, first announced last year, will create the world's largest cement maker with $44bn in sales per annum.

CRH's shares were up 1.9% at 1,628p by 16:20.