Tarmac's Plan to Buy Breedon Concrete Plants Raises Competition Concerns -CMA

   By Ian Walker 
 

The U.K. Competition and Markets Authority said Thursday that it has identified competition issues over Tarmac Trading Ltd.'s plan to buy concrete plants from Breedon Group PLC (BREE.LN), and is seeking remedies from the companies to address its concerns.

The CMA said that ready-mix concrete customers in the Cardiff, Bridgend and Carnforth areas would face increased prices or worse-quality service as a result of the proposed merger.

The regulator has given Tarmac until May 3 to address its concerns, or face further investigation.

Breedon Group announced last December that it had agreed to buy four quarries and an asphalt plant from CRH PLC (CRH) subsidiary Tarmac for 16.5 million pounds ($23 million).

The construction materials company said that payment for the assets will comprise 27 of its ready-mixed concrete plants and GBP4.9 million in cash.

The CMA said it didn't find any competition concerns over Breedon Group's plans to buy the four aggregates plants and asphalt plant from Tarmac.

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

April 26, 2018 03:00 ET (07:00 GMT)

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