CMA launches Breedon and Tarmac asset swap enquiry

The Competition & Markets Authority (CMA) has launched Phase 1 of a merger inquiry into the anticipated acquisition by Tarmac of certain assets of Breedon Group. The initial period of the CMA’s merger inquiry began on 28 February, with the deadline for a decision on whether to refer the merger for a Phase 2 investigation currently scheduled for 26 April 2018.

In a statement issued on 1 February, the CMA explained that it was "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."

The proposed asset-swap deal, announced on 13 December 2017, would see Breedon acquire four quarries and an asphalt plant from Tarmac for GBP16.5m, while seeing the transfer of 27 ready-mixed concrete plants to Tarmac, plus a payment of GBP4.9m in cash.

Breedon would acquire quarries in Inverness, Penrith and Wrexham, and a quarry and asphalt plant in Porthmadog, whilst Tarmac would gain ready-mixed concrete plants in locations extending across the UK from Dumfries in Scotland to Exeter in Devon.