CRH in talks to double holding in Israeli firm

CRH is in talks about doubling its holding in Israeli industrial firm Mashav, from 25 to 50 per cent.

CRH has had the option to double its stake in Mashav since it acquired a quarter of the company in the middle of 2001 for almost $150 million (€120.7 million). The option, which expires at the start of 2004, would see CRH take up another 25 per cent at a similar price.

Mashav was valued at $400 million at the start of this year.

It was reported a few months ago that CRH was interested in increasing its stake but only at a discounted price. Mashav's owner, Clal Industries and Investments, reportedly rebuffed that approach, despite being keen to sell an additional 25 per cent.

Analysts said yesterday that a new approach from CRH would not be surprising.

Mashav's holdings include Israel's only cement producer, Nesher. The firm has suffered in recent times due to an ailing domestic property market and persistent political unrest.

A CRH spokeswoman confirmed yesterday that the two firms were in discussions. It is thought likely that the talks are focusing on how a deal could proceed if CRH does not take up its option.