Competition & Markets Authority invites comment on proposed asset swap transaction
THE Competition & Markets Authority (CMA) has opened an investigation into the proposed deal that would see Breedon acquire four quarries and an asphalt plant from Tarmac for £16.5 million, to be satisfied by the transfer of 27 ready-mixed concrete plants to Tarmac, plus a payment of £4.9 million in cash.
The deal, which was announced on 13 December 2017 and is conditional on approval by the CMA, would see Breedon acquire quarries in Inverness, Penrith and Wrexham, and a quarry and asphalt plant in Porthmadog, whilst Tarmac would gain 27 ready-mixed concrete plants in locations extending from Dumfries in Scotland to Exeter in Devon.
In a statement issued yesterday [1 February] the CMA said it is ‘considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services’.
To assist in its investigation, the CMA is inviting comment on the proposed deal from any interested party. Written representations about any competition or public interest should be sent to: email@example.com by 15 February 2018.