CMA's Review of Proposed Acquisition

RNS Number : 1981M

Breedon Group PLC

26 April 2018

 

   NEWS RELEASE                                                    

26 April 2018                                                                                      

BREEDON GROUP PLC

("Breedon" or the "Company")

Competition Authority's review of proposed acquisition

of assets from Tarmac Holdings Limited ("Tarmac")

Breedon notes the announcement today by the Competition and Markets Authority ("CMA")  in relation to its Phase 1 reviews of Breedon's proposed acquisition of certain assets from Tarmac in exchange for a number of ready-mixed concrete plants and a cash payment, as announced on 13 December 2017. 

It further notes that the CMA has cleared Breedon's acquisition of four quarries from Tarmac, but has concluded that there is a realistic prospect of a substantial lessening of competition in three local areas in England and Wales in relation to the supply of ready-mixed concrete.

The outcome is not unexpected by the Company and there will now be a short period during which to agree remedies with the CMA to address the concerns it has identified.  Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later this summer.

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Note to editors

Breedon Group plc is a leading construction materials group in the UK and Ireland. It operates two cement plants and around 70 quarries, 40 asphalt plants, 200 ready-mixed concrete and mortar plants, nine concrete and clay products plants, four contract surfacing businesses, six import/export terminals and two slate production facilities.

The Group employs nearly 3,000 people and has around 870 million tonnes of mineral reserves and resources.  The Group's strategy is to continue growing organically and through the acquisition of businesses in the heavyside construction materials market.

For further information:

Breedon Group plc                                            Cenkos Securities plc

Pat Ward, Group Chief Executive                        Max Hartley (NOMAD & joint broker)

Rob Wood, Group Finance Director                     020 7397 8900

01332 694444

                                                                              Numis Securities (joint broker)

Stephen Jacobs, Head of Communications         Ben Stoop/Heraclis Economides

07831 764592                                                       020 7260 1000

 

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