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Breedon to sell sites to pave way for Hope deal

Rail waggons high res

Breedon Aggregates has offered to sell 14 of its ready mix concrete sites to clear the path for its takeover of Hope Construction Materials.

It comes after the Competition and Markets Authority (CMA) has said it will refer Breedon’s anticipated acquisition of Hope for an in-depth investigation unless it is given acceptable reassurances that the move won’t lead to a price hike.

The CMA said it will consider in detail whether to accept undertakings offered by Breedon instead of carrying out an in-depth merger investigation. Part of the consideration will include a public consultation on the plans.

Although the majority of the plans for the £336M acquisition of Hope Construction Materials by Breedon Aggregates, announced last November, caused the CMA no concern, it said it has competition concerns in relation to 27 ready-mix concrete sites, meaning that customers might face higher prices as a result of the merger in the local area.

The two companies operate more than 200 ready mix concrete sites across England, Wales and Scotland.

A statement from the CMA said: “The CMA has decided that there are reasonable grounds for believing that the undertakings offered by Breedon, or a modified version of them, might be accepted by the CMA.”

It said it will make its decision by June 23. Breedon said it welcomed the CMA decision and still expected the acquisition to go ahead later this summer.

 

 

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