Confirmation of Ash Grove’s approval means that CRH will now acquire the fifth largest US cement producer for $3.5bn. This represents the best possible outcome after two uncertain weeks which prompted fears that the group could get drawn into a protracted bidding war or lose out entirely. The deal is a real coup for CRH with a c.8x multiple paid including synergies of c.$100m. The deal is strategically important, reducing the group’s dependence on third-party producers. Ash Grove will be c.7-8% accretive to EPS without stretching the balance sheet (net debt/EBITDA will still be well below 2x). CRH’s financial strength and capital discipline places it ideally to exploit these opportunities.