CRH Faces Legal Battle Over Ukraine Cement Plant Acquisition

CRH is in a legal battle with Ukrainian building materials group Kovalska over the purchase of Dyckerhoff, a cement plant owner, which Kovalska claims will create a duopoly in Ukraine's cement market. The purchase was approved by Ukraine's mergers regulator, but Kovalska is taking the case to the supreme court. The country needs up to 20 million tonnes of cement annually to rebuild from war damage.

CRH's Legal Battle with Ukrainian Building Materials Group Kovalska Over the Purchase of Dyckerhoff

CRH, the global building materials giant, is embroiled in a legal dispute with Ukrainian building materials group Kovalska over the purchase of Dyckerhoff, a cement plant owner. The purchase, approved by Ukraine's mergers regulator, is being challenged by Kovalska, which claims it will create a duopoly in Ukraine's cement market [1].

The anti-monopoly committee of Ukraine allowed CRH to buy Dyckerhoff Ukraine from its previous owner, Italian group Buzzi, last year. This sparked legal challenges by Kovalska, who argued that the deal would harm competition in the market for a vital building material. CRH, however, maintains that the purchase was completed in line with international practice and in full compliance with the law and the regulator's approval [1].

The Irish group, the world’s biggest building materials maker, has invested €600 million in Ukraine since 1999, including €80 million since Russia's invasion. CRH argues that the acquisition of Dyckerhoff's Volyn and Pivden plants will allow further investment in modernizing production to meet demand for critical infrastructure and housing [1].

Kovalska, on the other hand, is appealing the anti-monopoly committee's decision to the supreme court. The company argues that the acquisition gives CRH 46% of Ukraine's cement market on average and up to 99% in some regions, which it claims threatens competition. Ukraine defines market dominance as 35%, while the European Union benchmark for this is 40% [1].

The legal battle comes at a critical time for Ukraine, which needs up to 20 million tonnes of cement annually to rebuild from war damage. However, even before the conflict, Ukraine could only produce 11 million tonnes of cement [1].

Investment Implications

The legal battle could have significant implications for CRH's operations in Ukraine and its overall investment strategy. Investors should closely monitor the developments, as the outcome of the case could affect CRH's market share and profitability in the region.

References

[1] https://www.irishtimes.com/business/2025/08/18/heavyweight-firm-crh-and-oreilly-motor-dealer-family-mired-in-ukraine-row/