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  • You are here:M&A

Tarmac-Breedon deal hit by competition concerns

Tarmac has been asked to address “competition concerns” over its deal to buy concrete plants from rival Breedon, the Competition and Markets Authority (CMA) has announced.

The proposed deal between the two companies would see Tarmac acquire 27 ready-mix concrete plants while Breedon would buy four aggregate facilities and one asphalt plant.

However, the CMA’s initial review of the agreement found customers in Cardiff, Bridgend and Carnforth could face increased prices or poorer service in the supply of ready-mix concrete, due to the companies being close rivals in those areas.

The CMA’s competition concerns do not apply to Breedon’s acquisition of the aggregates and asphalt plants and that part of the deal has been approved by the watchdog.

It has given Tarmac until 3 May to address the concerns, otherwise the deal will be referred for an in-depth investigation by an independent group of CMA panel members.

Last month, Breedon acquired rival supplier Lagan Group in a deal worth £455m.

It marked the latest in a series of acquisitions in recent years.

In 2014, Breedon bought Cotswolds-based ready-mix concrete supplier Huntsman’s Quarries for £15m, followed by Hope Construction Materials a year later in a deal worth £336m.

This week the supply giant announced the promotion of current QPR vice-chair Amit Bhatia to become its deputy chairman.

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