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Wed September 23 2020

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Breedon keeps Cemex assets at arm’s length for now

3 Aug Building materials producer Breedon has completed the acquisition of around 100 Cemex operations around the UK but will keep them ringfenced as a separate business until the competition authorities have been satisfied.

Breedon disclosed in January 2020 that it had agreed to pay the Mexican cement giant £178m for 49 ready-mix plants, 28 aggregate quarries, four depots, one cement terminal, 14 asphalt plants and four concrete products operations. Parts of Cemex’s Paving Solutions business in the UK are also included in the sale to Breedon. [See our previous report here.]

However, the Competition & Markets Authority (CMA) instructed that these assets should be held separate from Breedon until it has completed its investigation.

With the acquisition completing on 31st July, Breedon  announced today that the assets will be operated as Pinnacle Construction Materials, a newly-created ring-fenced business led by an independent management team and operating from its own offices.

The CMA is expected to announce the initial conclusions of its phase one investigation into the market impact of the transaction on or before 26th August 2020. 

Following the conclusion of the CMA's investigation, which could still take several months, and subject to the outcome of that investigation, the assets are expected to be incorporated into Breedon's UK business, Breedon said.

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MPU

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