Breedon-CEMEX deal moves closer to approval

The UK Competition and Markets Authority has indicated it will approve Breedon Group's acquisition of CEMEX assets in the UK, providing certain requirements are fulfilled.
Concrete Plants, Equipment & Applications / September 15, 2020
By Liam McLoughlin
Breedon Group says it will divest some UK operations to gain approval for the merger
Breedon Group says it will divest some UK operations to gain approval for the merger

The CMA has been investigating the acquisition by construction materials group Breedon of certain assets of Cemex Investments Limited. In August the CMA voiced concern that the completed merger could result in a substantial lessening of competition in relation to the supply of ready-mixed concrete, non-specialist aggregates or asphalt in 15 local markets across the UK.

The authority has now issued an update saying that it considers that "there are reasonable grounds for believing that the undertakings offered by Breedon Group plc, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002."

The undertakings will require that Breedon Group divests a small number of ready-mixed concrete plants and an asphalt plant in England, and two quarries and a cement terminal in Scotland.

Breedon said in a statement that it "fully expects to be able to finalise the required undertakings to the CMA's satisfaction and complete the required divestments in the near future, paving the way for the integration of the remaining former CEMEX assets into the Group later this year."

It added that until that time the assets will continue to be held separate from Breedon and operated as Pinnacle Construction Materials. The CMA has previously instructed that the CEMEX assets should be held separate from Breedon until it has completed its investigation.

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