The UK’s monopoly watchdog yesterday gave Breedon Aggregates permission to complete its £336million takeover of a rival building materials firm.
The Competition and Markets Authority (CMA) said it had received no objections from third parties to Breedon’s deal for Hope Construction Materials, which had been owned by Luxembourg-based Cortolina Investments.
Breedon, which is supplying materials for the Aberdeen city bypass and the A9 dualling between Perth and Inverness, said it expected the deal to go through on August 1.
The transaction was first announced in November 2015, but was held up amid concerns from the CMA that Breedon would gain an unfair advantage over competitors in eight UK regions.
To satisfy the CMA, Breedon submitted proposals to sell off 14 ready-mixed concrete plants, including Hope’s plant at Cloddach, Moray, and one of the two Inverness sites owned by Breedon and Hope.
Building supplies firm Tarmac, which is owned by Dublin-based CRH, and The Concrete Company, based in Peterborough, have emerged as buyers for the sites.
CMA said late last month it had accepted the remedy, but was giving “interested parties” two weeks to challenge the decision.
None were forthcoming.
“The CMA received no submissions that raised merger specific concerns, and is satisfied that the proposed remedy will address the concerns identified,” the watchdog said yesterday.
Welcoming the outcome, Breedon chairman Peter Tom said yesterday: “The way is now clear for Hope to join us and create the UK’s largest independent construction materials group.
“It will give us a stronger platform for growth, with a broader geographical footprint, increased scale, an improved product mix, greater financial capacity and a team of highly talented people.
“We have built our reputation on our service, delivered locally, promptly and to the highest quality standards.
“We look forward to working with our new colleagues to deliver an even better and more comprehensive service to our customers in the years ahead.”
The integration of Hope will boost Breedon’s portfolio to include about 60 quarries, nearly 30 asphalt plants and more than 200 concrete plants.
The Derby-headquartered group, whose Scottish business is managed from Dundee, will have a workforce of 2,100, compared to 1,200 before the merger.
Breedon, which will change its name to Breedon Group next month, has not ruled out further acquisitions in the coming years.
Last week, Mr Tom said the market uncertainty following Brexit could take a chunk out of a number of rivals’ share prices, and that Breedon was looking to capitalise.
He was speaking after the company revealed a 19% surge in first half pre-tax profits, to £20.9million.
