Breedon may seek €370mn plus equity issue

894 Breedon Aggregates' executive chairman Peter Tom is reported to be considering a move that could make the business a major player in the UK construction supplies sector.

The firm is regarded as a leading candidate to purchase a considerable part of UK aggregates being disposed of after a competition probe into 868 Tarmac and 725 Lafarge. Breedon may embark on an equity issue of up to €373.82million (£300million)that would in turn make it a €621.71million (£500million) business should it purchase the assets, according to 5531 Peel Hunt's Robin Hardy.

Breedon is believed to have a 2.5% UK heavy construction materials market share, compared with Tarmac (20%), 1707 Aggregate Industries (18%) and Lafarge (9%).