CRH - Withdraws interest in PPC; better signs in the Philippines

Davy Research
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Not surprisingly CRH has ended its interest in acquiring the South African cement producer PPC. The group’s stated priority is its developed end-markets so we always viewed PPC as a low probability deal which fitted into the “we look at all opportunities” category. Meanwhile, some small relief may be on its way in the Philippines. The import threat may soon be reduced by new import controls coming into place, while Vietnamese producers are becoming less competitive due to power price hikes.