The CMA has found that Breedon Aggregates acquisition of Hope Construction Materials gives rise to competition concerns in relation to 27 RMX sites, meaning that customers might face higher prices as a result of the merger in the local areas surrounding these sites.
The CMA’s initial investigation has ruled out any competition concerns over the production and supply of aggregates and in relation to the potential for the merging companies to restrict the supply of aggregates or cement to rival suppliers. The merger will therefore be referred for an in-depth phase 2 investigation by an independent group of CMA panel members unless Breedon is able to offer undertakings which address the competition concerns.
Sheldon Mills, CMA Senior Director of Mergers, and decision-maker in the initial investigation, said:Ready-mixed concrete is an essential product for a wide range of construction projects of all sizes in the public and private sectors. The vast majority of the merger raises no concerns but there are a number of areas where the companies compete strongly with each other for customers and the concern is that the loss of such rivalry could lead to price rises for customers. The businesses may now resolve these concerns or face a detailed investigation.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/12042016/concerns-over-breedon-hope-merger-874/