CRH may make offer for Tarmac

CRH has indicated that it would consider bidding for Tarmac after posting strong interim results.

The Ireland-based building materials supplier spent £1.4bn on acquisitions in 2006 and has spent a further £677m already this year, but at an expected £3bn, Tarmac would be its largest ever transaction.

Since Hanson was taken over by HeidelbergCement, Tarmac is one of the last remaining UK building materials firms. It is expected that alongside CRH, it will attract bids from Lafarge and Holcim, while Cemex and Aggregate Industries are unlikely to be in the running due to competition issues.

A CRH spokesman said a bid for Tarmac would be an option once the company's financial details are released.