Last month the UK Competition and Markets Authority (CMA) launched Phase 1 of its merger inquiry into the anticipated acquisition by Breedon Group of the CEMEX UK assets.
The CMA has instructed that these assets should be held separate from Breedon until it has completed its investigation
Accordingly, Breedon says that the assets will be operated as Pinnacle Construction Materials (“Pinnacle”), a newly-created ring-fenced business led by an independent management team and operating from its own offices.
Pinnacle offers a range of heavy building materials, including aggregates, asphalt, ready-mixed concrete, concrete products and cement, together with contracting services, from approximately 100 locations in England, Wales and Scotland.
Breedon says that the CEMEX acquisition brings with it a portfolio of high-quality, well-located operations with a team of around 650 employees and a further 170 million tonnes of mineral reserves and resources.
The group adds that the deal will strengthen its regional footprint in the UK and provide a platform for future expansion.
The CMA is presently undertaking a Phase 1 investigation, in respect of which it is expected to announce its initial conclusions on or before 26 August 2020.
Breedon says that, 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.