CURRENT ACCOUNT: One can only speculate on how the board at Heiton Holdings reacted to the latest expansion news from rival Grafton this week, but a sigh of relief would not have been too surprising.

In normal circumstances, it would be different. The forward march of five-times'-larger Grafton would either scare competitor Heiton into submission or spur it into ambitious growth of its own.

Either could still happen but, given that relations between the two companies are hardly normal, Heiton may be happy to accept the latest development as a deliverance.

A constant presence in the background for both companies is Grafton's strategic 24 per cent strategic holding in Heiton, which it has accumulated since 1999.

For a time, a takeover, or perhaps merger, was mooted by observers and while the prospects for such a development have since dissipated they have not disappeared entirely. Or have they?

Grafton's acquisition of Lincoln-based Jackson Building Centres, for €144 million, is a big deal for the company, even when the financial pain is eased by a €70 million rights issue.

While Grafton seems set on continuing its active expansion this year, it is unlikely that a deal of the magnitude of a takeover of Heiton will feature among its efforts.

This, coupled with Grafton's emphasis on growing UK rather than Irish operations, makes a play for Heiton even more of a long-term possibility than it was before this week.

As one analyst said after the Jackson announcement, even if Grafton's latest venture goes against expectations and turns out badly, it will at least have allowed Heiton's directors to sleep a little easier at night.