CRH Plans to Acquire NCC's Building Materials Businesses in Denmark and Finland

en.Wedoany.com Reported - On October 7, building materials company CRH signed an agreement with Swedish construction group NCC to acquire NCC Industry's business assets in Denmark and Finland, covering asphalt production, sand and gravel aggregate extraction, and building materials recycling operations. The transaction is still subject to approval from relevant regulatory authorities and the satisfaction of closing conditions, and is expected to be completed in the second half of 2027.

Under the agreement, CRH plans to take over NCC Industry's network of asphalt production plants operating in Denmark, onshore and offshore sand and gravel aggregate extraction sites, and related mineral reserves. These assets cover multiple material supply nodes within Denmark, with products mainly used for road construction, infrastructure works, and industrial engineering. CRH Denmark will take over the relevant operations after closing, adding asphalt production and aggregate supply assets.

The acquisitions in Finland include hard rock quarries supported by ore reserves, backfill operations, and building materials recycling operations. These operations will be merged with CRH's existing aggregate and building materials businesses in Finland. The transaction announcement did not separately specify the exact number and annual production capacity of the production facilities acquired in the two countries.

This acquisition is part of NCC's sale of its entire Industry business segment. NCC is selling the segment separately to CRH and Heidelberg Materials, with CRH acquiring the Denmark and Finland operations and Heidelberg Materials acquiring the Sweden and Norway operations. The enterprise value of the entire divestment plan is SEK 8.2 billion, expected to be paid in cash at closing, and NCC expects to receive approximately SEK 7 billion in positive cash flow. The above amounts relate to the overall divestment plan and are not the amount of CRH's separate acquisition.

NCC Industry generated sales revenue of SEK 12.6 billion and operating profit of SEK 879 million in 2025, with the financial data covering the entire Nordic business segment. NCC initiated a strategic review of the Industry business in 2025 and decided in early 2026 to separate the segment from the group's other businesses, subsequently launching the sale process.

Under the transaction arrangements, the relevant businesses of CRH and NCC will continue to operate independently before closing, and existing contracts, purchase orders, and service agreements will remain unchanged for the time being. NCC will continue to recognize the operating income of the Industry business before the transaction is completed and will classify it as a discontinued operation starting from the third quarter of 2026.