Competition and Markets Authority says plan could avoid in-depth probe of 拢336m buyout
Breedon Aggregates could avoid an in-depth investigation of its planned acquisition of Hope Construction Materials if it sells off 14 ready-mixed concrete sites where the deal would lead to reduced competition, the government鈥檚 anti-monopoly watchdog has said.
Earlier this month, the Competition and Markets Authority (CMA) said that while the bulk of Breedon鈥檚 proposed 拢336m buyout 鈥� 鈥� appeared acceptable, concerns remained about 27 sites that supplted ready-mixed concrete where higher prices may result from a merger.The two businesses operate more than 200 ready-mixed concrete sites across England, Wales, and Scotland.
The CMA gave Breedon a deadline of April 19 to come up with a plan to remedy the conflict, and that it believed that there were 鈥渞easonable grounds鈥� that the plans to sell 14 ready-mix sites to an approved buyer would be acceptable under the terms of the Enterprise Act 2002.
It said a decision on the remedial measures was likely to be made by the end of June, but could be delayed until August.
鈥淭he CMA will undertake a public consultation on whether the proposed undertakings are sufficient to address the competition concerns,鈥� the statement said.
鈥淚f the undertakings are not accepted, the acquisition will be referred for a phase 2 merger investigation.鈥�
Breedon