Breedon Group

A new deal – and the Cemex deal

  • Sectors : Building Materials
  • Companies : Breedon Group

Ratings and price correct at time of issue.

  • Breedon Group

    Closing Price: 78.0p

  • RATING 22/11/19

  • PREVIOUS RATING 25/10/17

    NEUTRAL

DAVY VIEW

The UK Prime Minister yesterday (June 30th) outlined his “New Deal”, which aims to accelerate investment in infrastructure and housing. The £5bn plan includes c.£1bn for ‘shovel-ready’ road projects and bridge repairs. The measures broadly follow what was already announced in the March budget and so, in that context, do not represent new funding. However, at the very least, the plan reaffirmed the government’s promise to materially step up capital spending in the UK over the next five years. Meanwhile, the UK Competition and Markets Authority (CMA) has announced a phase one investigation into the Cemex deal. The investigation was expected and should conclude by August 26th. Deal completion is not dependent on the outcome.

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Jul 1 2020, 08:05 IST/BST

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