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Thu July 25 2024

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Breedon sells plants to satisfy competition authority

9 Nov 20 Breedon has agreed the disposal of certain assets to Tillicoultry Quarries for £12.2m cash.

Tillicoultry Quarries is buying 14 sites from Breedon, including 11 south of the border
Tillicoultry Quarries is buying 14 sites from Breedon, including 11 south of the border

Tillicoultry Quarries, a family-owned Scottish company, is buying 14 sites from Breedon, including 10 ready-mixed concrete plants and an asphalt plant and associated aggregates depot in England, and two quarries and a cement terminal in Scotland.

Tillicoultry is one of the largest suppliers of asphalt in central Scotland; the Breedon deal takes it into England for the first time.

Breedon is selling at the direction of the Competition & Markets Authority (CMA) as a condition for its purchase of certain assets from Cemex UK.

Completion of the transaction with Tillicoultry is subject to final confirmation by the CMA, following public consultation. However, Breedon expects to wrap it up before the end of the year. Once completed, it will then be able to integrate its former Cemex assets into its own operations. Up until now, at the direction of CMA, the Cemex assets have been held at arm’s length until satisfying competition concerns.

Breedon’s £178m deal with Cemex, announced in January 2020, is 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.

Breedon chief executive Pat Ward said: "We are very pleased with the outcome of this process and believe it is in the interests of all stakeholders. It allows Breedon to realise fair value for the assets disposed of which, together with the people employed in them, will be in good hands under new ownership of Tillicoultry Quarries.”

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