Bullish Sign? - Bounced off 200 EMA, page-2821

Is acquisition of BCG good for the growth and diversification of NWH?

See Motley's take on this...

A likely candidateOne company that should be put high on this list is construction services group NRW Holdings Limited (ASX: NWH).The NWH share price has not only more than doubled in the past year to hit $2.94, which is its highest since 2012, but Deutsche notes that there could be two potential targets that could fall into management’s lap.“It is rare the planets align where a company’s valuation multiples are at historical highs, it trades at a significant premium to peers, its outlook and execution are excellent and there are two motivated sellers of businesses that make strategic sense to acquire,” said the broker.“However, in our view, this is the place where NWH finds itself.”The first business that makes strategic sense of NWH to acquire is the mining services division of Downer EDI Limited (ASX: DOW), while second is the national contract-mining, maintenance and civil-construction business from BGC Group.BCG Group announced in February this year that it had started looking at options for its BCG Contracting business.There is no word that NWH is even sniffing around these businesses and I am certainly not suggesting investors read too deeply into this speculation.Nonetheless, it’s interesting food for thought and something investors should keep an eye on.