Building materials group CRH has announced another move into China, following its first acquisition in the country last week.
The company plans to acquire a 26% stake in the cement operations of the Jilin Yatai Group. Yatai Cement comprises four cement plants and one grinding station, with total cement capacity of around nine million tonnes a year, located in the provinces of Jilin and Heilongjiang in northeast China.
No financial details were given, but NCB analyst John Sheehan estimated that the initial investment was €50-75m.
The Jilin Yatai Group is listed on the Shanghai Stock Exchange and Yatai Cement is one of the ten largest cement groups in China.
CRH has signed a letter of intent which also gives it the option to acquire further shares after three years up to a maximum of 49%. The deal is subject to more detailed negotiations and Chinese government approval.
CRH last week agreed to buy the Harbin Sanling Cement Company in Heilongjiang province.
Shares in CRH closed 53 cent higher at €27.33 in Dublin this evening.