CRH disposals set stage for possible Lafarge-Holcim asset bids

DUBLIN, Jan 8 (Reuters) - Irish building supplies group CRH on Thursday said it generated 350 million euros ($413 million) from disposals last year with another 295 million due in the coming months as it streamlines ahead of possible bids for assets of rivals Lafarge (Paris: FR0000120537 - news) and Holcim (Other OTC: HCMLF - news) .

France's Lafarge and Swiss peer Holcim secured European Union antitrust approval for their merger in December after promising to sell overlapping assets worth about 12 percent of their combined revenues.

Sources have told Reuters that CRH (NYSE: CRH - news) is expected to submit binding bids by a mid-January deadline for the assets.

In an end-of-year statement, CRH said the disposals left it "well positioned to pursue acquisitions".

Merrion Stockbrokers analyst David Holohan said CRH's disposals showed it was focused on maximising "financial flexibility" ahead of possible bids.

But he said the Irish group may ultimately lose out if it is unwilling to match the high valuation multiples private equity firms have paid for business products businesses in recent months.

CRH's total spend of 190 million euros in 2014 was less than one-third what it spent the previous year and far lower than the 1.5 billion Chief Executive Albert Manifold said last year the company had available for purchases. ($1 = 0.8477 euros) (Reporting by Conor Humphries; Editing by Dale Hudson)