CC to investigate construction materials merger

24 Sep 2013 04:18 PM

The Competition Commission (CC) is to investigate the completed acquisition by Breedon Aggregates Limited (Breedon) of certain assets of Aggregates Industries UK Limited (Aggregate Industries).

The Office of Fair Trading (OFT) has referred the case to the CC, which will decide whether the acquisition may be expected to result in a substantial lessening of competition in any market or markets for goods or services in the UK.

Breedon has acquired 11 aggregates quarries (six of which are active), four asphalt plants (including associated contracting services), seven ready-mix concrete plants (and two mothballed plants), and two concrete block factories in the Grampian, Tayside and Fife, Highlands and Hebrides regions of Scotland.

The OFT has found that the merger raises a realistic prospect of a substantial lessening of competition in the supply of primary aggregates, asphalt, and ready-mix concrete in a number of local areas in the North of Scotland.

The CC is expected to publish its final report by 10 March 2014.

The CC would like to hear from all interested parties, in writing, by no later than 15 October 2013.

To submit evidence, please email: Breedon-AI@cc.gsi.gov.uk or write to:

Inquiry Manager
Breedon/Aggregates merger
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD

Notes for editors

1. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.

2. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.

3. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

4. Further information on this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.

5. Enquiries should be directed to Rory Taylor or Siobhan Allen or by ringing 020 7271 0242.