The latest deal by Breedon, the acquisitive quarry operator and construction materials group, has hit a minor pothole, with the competition watchdog raising reservations.
Breedon has agreed a £178 million (USS$235.2 million) acquisition of about a hundred quarries, ready-mixed concrete facilities, asphalt plants, and a cement terminal from Cemex, the Mexican multinational.
However, the Competition and Markets Authority has concluded that the deal raises issues in 15 local markets where Breedon and/or Cemex were already dominant, particularly in the cement market in eastern Scotland.
There are few players in the aggregates sector and a perennial worry is that if there is not enough competition, the price of construction materials will go up, increasing the costs of infrastructure and building in general.
Full Content: The Times
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