Breedon offer to divest certain assets to avoid Phase 2 investigation by Competition & Markets Authority
THE Competition & Markets Authority (CMA) has indicated that there are reasonable grounds for believing that the undertakings offered by Breedon Group plc, in connection with their recently completed £178 million acquisition of 100 CEMEX site across the UK, might be acceptable under the Enterprise Act 2002.
The CMA had previously warned the deal could result in a substantial lessening of competition, leading to higher prices and lower-quality building materials for UK construction projects. The Authority is particularly concerned about the supply of ready-mixed concrete, non-specialist aggregates or asphalt in 15 local markets across the UK.
To avoid the possibility of an in-depth Phase 2 investigation by the CMA, it is understood Breedon are looking to divest a small number of ready-mixed concrete plants and an asphalt plant in England, and two quarries and a cement terminal in Scotland.
The company has said it fully expects to be able to finalize the required undertakings, or a modified version of them, to the CMA’s satisfaction and complete the required divestments in the near future, paving the way for the integration of the remaining former CEMEX assets into Breedon Group later this year.