8-K

CRH PUBLIC LTD CO 8-K Report (Mar 25, 2008)

Filed March 25, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) has announced a significant strategic move through the signing of an agreement to acquire a 50% equity stake in My Home Industries Limited (MHIL), a privately-owned Indian cement company. This acquisition represents CRH's first investment in the Indian market and involves a total investment of EUR 290 million. The deal is expected to be finalized in the second quarter of 2008, with CRH and the existing owners set to jointly manage MHIL, ensuring equal board and management representation. MHIL operates three cement production units and has a grinding plant under construction, which will boost its annual capacity. The company holds strong market positions in Andhra Pradesh, a key market in India. This acquisition positions CRH to capitalize on the growth of the Indian economy and its expanding infrastructure needs, as highlighted by CRH's Chief Executive, Liam O'Mahony, who expressed enthusiasm for partnering with MHIL.

Key Highlights

  • 1CRH to acquire a 50% equity stake in My Home Industries Limited (MHIL), an Indian cement company.
  • 2Total investment by CRH amounts to EUR 290 million.
  • 3This marks CRH's initial entry into the Indian market.
  • 4Joint management of MHIL by CRH and existing owners with equal representation.
  • 5MHIL has a current annual cement production capacity of 3.2 million tonnes, increasing to 4.2 million tonnes upon completion of a new grinding plant.
  • 6MHIL has strong market positions in Andhra Pradesh, India's number two supplier to the state's 15 million tonne market.
  • 7Transaction expected to close in the second quarter of 2008.

Frequently Asked Questions

This acquisition signifies CRH's entry into the significant Indian market, a key step in its international growth strategy. It allows CRH to tap into the rapidly expanding Indian economy and its demand for building materials, particularly cement in the dynamic Andhra Pradesh region.

CRH's total investment for the 50% equity stake in My Home Industries Limited is EUR 290 million.

MHIL will be jointly managed by CRH and the existing owners. Both parties will have equal representation on the Board and in management, indicating a collaborative partnership approach.

MHIL currently has an annual cement production capacity of 3.2 million tonnes. This capacity is expected to increase to 4.2 million tonnes in early 2009 with the completion of a new grinding plant, strengthening its market position.