Tarmac's Plan to Buy Breedon Concrete Plants Raises Competition Concerns -CMA
April 26 2018 - 3:15AM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority said Thursday that it
has identified competition issues over Tarmac Trading Ltd.'s plan
to buy concrete plants from Breedon Group PLC (BREE.LN), and is
seeking remedies from the companies to address its concerns.
The CMA said that ready-mix concrete customers in the Cardiff,
Bridgend and Carnforth areas would face increased prices or
worse-quality service as a result of the proposed merger.
The regulator has given Tarmac until May 3 to address its
concerns, or face further investigation.
Breedon Group announced last December that it had agreed to buy
four quarries and an asphalt plant from CRH PLC (CRH) subsidiary
Tarmac for 16.5 million pounds ($23 million).
The construction materials company said that payment for the
assets will comprise 27 of its ready-mixed concrete plants and
GBP4.9 million in cash.
The CMA said it didn't find any competition concerns over
Breedon Group's plans to buy the four aggregates plants and asphalt
plant from Tarmac.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
April 26, 2018 03:00 ET (07:00 GMT)
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