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Fri September 21 2018

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Tarmac revises Breedon asset swap deal

10 May Tarmac and Breedon have revised the terms of their proposed asset swap after intervention by the Competition & Markets Authority, and the regulator is looking favourably on the new offer.

The Competition & Markets Authority (CMA) has been investigating Tarmac Trading’s proposal to acquire 27 ready-mix concrete (RMX) plants from Breedon Group and Breedon's reciprocal plan to acquire four aggregate plants and an asphalt plant from Tarmac.

On 26th April the CMA expressed concerns about Tarmac’s acquisition of RMX plants in the Cardiff, Bridgend and Carnforth areas, where both companies are close rivals.

In response, Tarmac has now offered not to acquire Breedon's ready-mix concrete plants in each of the local areas in which competition concerns were identified.

In a statement the regulator said: “The CMA has considered the undertakings offered and today announced that it considers that there are reasonable grounds for believing that the undertaking offered, or a modified version of it, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA.”

The CMA now has until 9th July to make a final decision.

MPU

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