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[Nov 2006]
CRH Signs Letter of Intent for Acquisition of Equity Stake in Chinese Cement Producer
CRH PLC has announced the signing of a Letter of Intent to acquire an equity interest in the cement operations of the Jilin Yatai Group. These operations (Yatai Cement) comprise four integrated cement plants and one grinding station, with total cement capacity of approximately 9 million tonnes per annum, located in the provinces of Jilin and Heilongjiang in north-east China. The Jilin Yatai Group is listed on the Shanghai Stock Exchange and Yatai Cement is one of the ten largest cement groups in China.
The Letter of Intent provides for the initial purchase by CRH of a 26% equity stake in Yatai Cement with an option to acquire further shares after three years up to a maximum of 49%. Completion of the proposed transaction is subject to detailed negotiation and due diligence and to Chinese government approval. Additional information will be provided in due course by the company.
In a comment, Liam O’Mahony, CRH Chief Executive, said: "CRH’s proposed equity stake in Yatai Cement when combined with the agreement to acquire the Harbin Sanling Cement Company in Heilongjiang province (announced on 10
October) provides an excellent opportunity for CRH to develop a strong position over time in what we believe are attractive markets in northeast China with good long-term growth prospects".www.crh.com
ENDS