CMA investigate proposed Breedon-Tarmac asset swap deal

The UK’s Competition & Markets Authority (CMA) is investigating a proposed deal that would see Breedon acquire four quarries and an asphalt plant from Tarmac for £16.5 million, to be satisfied by the transfer of 27 ready-mixed concrete plants to Tarmac, plus a payment of £4.9 million in cash. Announced on 13 December 2017, the deal is conditional on approval by the CMA. It would see Breedon acquire from Tarmac – a CRH company - quarries in Scotland, Cumbria and North Wales, and a quarry and asphalt plant
February 8, 2018 Read time: 2 mins

The UK’s Competition & Markets Authority (CMA) is investigating a proposed deal that would see 894 Breedon acquire four quarries and an asphalt plant from 868 Tarmac for £16.5 million, to be satisfied by the transfer of 27 ready-mixed concrete plants to Tarmac, plus a payment of £4.9 million in cash.

Announced on 13 December 2017, the deal is conditional on approval by the CMA. It would see Breedon acquire from Tarmac – a CRH company - quarries in Scotland, Cumbria and North Wales, and a quarry and asphalt plant in West Wales. Tarmac would gain from Breedon 27 ready-mixed concrete plants in locations around Britain - from Dumfries in Scotland to Exeter in Devon.

The deal is in line with Breedon’s strategy of expanding its aggregates portfolio, in this case adding around 25 million tonnes to the group’s mineral reserves and resources, and furthering the development of its asphalt capacity. It also streamlines Breedon’s ready-mixed network.

In a statement published on its website the CMA said it is “considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

To assist in its investigation, the CMA is inviting comment on the proposed deal from any interested party. Written representations about any competition or public interest should be sent to: %$Linker: 2 Email <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-email [email protected] false mailto:[email protected] true false%> by 15 February 2018.

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