Competition and Markets Authority identifies competition concerns in part of proposed Tarmac-Breedon asset swap
THE Competition and Markets Authority (CMA) says it has identified competition concerns following an investigation into the proposed asset swap deal between Tarmac and Breedon.
The CMA has been investigating Tarmac’s proposal to acquire 27 ready-mixed concrete plants from Breedon Group, and Breedon’s plans to acquire four aggregate plants and one asphalt plant from Tarmac.
Following its initial ‘Phase 1’ review, the CMA has found that the proposed merger gives rise to competition concerns in the supply of ready-mixed concrete in the Cardiff, Bridgend and Carnforth areas, where both companies are close rivals.
It says the lack of other strong suppliers of ready-mixed concrete in these areas could mean that customers would face increased prices or a worse quality of service as a result of the proposed merger.
With regard to Breedon’s plans to acquire four aggregates plants and an asphalt plant from Tarmac, the CMA found no competition concerns and has cleared that part of the deal.
Tarmac now have until 3 May to address the concerns outlined otherwise the merger will be referred for an in-depth Phase 2 investigation by an independent group of CMA panel members.