‘Concerns’ over £16.5m Breedon-Tarmac deal

The Competition and Markets Authority (CMA) has said it has indentified “concerns” over the £16.5m deal that would see Breedon, the Leicestershire-based construction materials group, buy four quarries and an asphalt plant from Tarmac.

Following its initial ‘Phase 1’ review, the CMA has found that the proposed merger gives rise to competition concerns in the supply of RMX in the Cardiff, Bridgend and Carnforth areas, where both companies are close rivals.

The lack of other strong suppliers of RMX in these areas could mean that customers would face increased prices or a worse quality of service as a result of the proposed merger, says the CMA.

With regard to Breedon’s plans to acquire four aggregates plants and an asphalt plant from Tarmac, the CMA found no competition concerns and has cleared that part of the deal.

Tarmac now has until 3 May to address the concerns outlined otherwise the merger will be referred for an in-depth Phase 2 investigation by an independent group of CMA panel members.