The competitions watchdog has approved the sale of quarries in Fife and Perth to satisfy its concerns about a multi-million pound deal.
Almost a year ago building materials firm Breedon announced it had agreed a £178 million deal to buy around 100 Cemex sites, including aggregates quarries, ready-mixed concrete facilities, asphalt plants and a cement terminal, across the UK.
Price alignment concerns
In August the Competition and Markets Authority (CMA) said the transaction could lessen competition and lead to higher prices and lower quality building materials.
It found the merger could make it easier for cement suppliers in the East of Scotland to “align their behaviour, without necessarily entering into any express agreement or direct communication”, in a way that limits the rivalry between them.
Breedon, which has its headquarters at Ethiebeaton in Angus, responded last month with a proposal to sell 14 sites to rival Tillicoultry Quarries Limited for £12.2m to satisfy the competition concerns.
Tayside and Fife assets to be sold
This deal includes sand and gravel quarries in Collessie in Fife and Loanleven near Perth, and a cement terminal based at the Port of Dundee.
In a stock market announcement, Breedon said the CMA had accepted the proposal and the Cemex merger will now not be referred for an in-depth phase 2 CMA investigation.
The firm said: “We now expect the disposal of certain assets to Tillicoultry Quarries Limited to complete shortly.”
Who are Breedon Group?
Breedon Group plc employs more than 3,500 people and has around 1 billion tonnes of mineral reserves and resources.
It operates two cement plants and an extensive network of quarries, asphalt plants and ready-mixed concrete plants, together with slate production, concrete and clay products manufacturing, contract surfacing and highway maintenance operations.
The group’s strategy is to continue growing through organic improvement and the acquisition of businesses in the heavyside construction materials market.