The Federal Trade Commission has announced that Lehigh Cement Co (HeidelbergCement Group) and Keystone Cement Co (Giant Cement group) have decided to abandon their proposed merger. The news comes about two weeks after the FTC said it was challenging Lehigh Cement’s planned acquisition of Keystone Cement.
"This is great news for cement customers in eastern Pennsylvania and western New Jersey," Acting Bureau of Competition Director, Maribeth Petrizzi, said in a statement. "The FTC voted 4-0 to challenge this transaction because it would have reduced the number of significant competitors in the market for grey Portland cement in this region from four to three."
In its merger review, the FTC specifically pointed out that Lehigh Cement owns and operates two cement plants serving customers in eastern Pennsylvania and western New Jersey. Keystone Cement, the FTC said, provided "intense competition," which helped to keep market prices down.
