This comes after the Competition Commission (CC) provisionally found that some customers could face higher prices following Breedon’s acquisition of certain assets from
The company may have to dispose of aRMX plant in the Peterhead area; an asphalt plant near Aberdeen and also give undertakings in respect of an asphalt plant in the Inverness area.
In April 2013, Breedon bought 11 aggregate quarries; four asphalt plants; nine RMX plants and two concrete block factories from Aggregate Industries. The two were previously competitors for many of these products across north-east Scotland.
“The nature of these products means the markets are local - they are expensive to transport and additionally ready-mixed concrete has a short shelf life,” says Simon Polito, chairman of the inquiry group.
“So the loss of a competitor in even a relatively small area matters when the cost and proximity of the production site are the most important factors for customers and in a market where most prices are negotiated.
“We now want to look in detail at what measures will protect the interests of customers. This is likely to involve the sale of asphalt and ready mixed concrete sites in the affected areas.”
The Competition Commission will publish its full findings in May.
