Watchdog eyes concrete tie-up

The UK’S competition watchdog is planning to dig deeper into a massive deal in the concrete sector, saying it could block customers from getting the best deals.

The Competition and Markets Authority (CMA) said yesterday that, if Breedon’s acquisition of quarries and concrete mixing sites from Cemex goes ahead, customers in 15 areas of the UK might find that competition to win their business drops.

The CM A said it plans to refer the investigation to a phase two probe unless the businesses can allay its fears by next Wednesday.

CMA senior director Colin Raftery said: “These products are widely used in a range of building projects across the UK and account for a material part of the construction costs faced by businesses and public bodies.

“As the majority of these materials are sourced locally, it’s vital to ensure that enough competition will remain at the local level so there’s enough choice and prices remain fair.”

The £178 million deal would see 100 sites move from Cemex to Breedon, including aggre - gate-producing quarries, ready-mixed concrete facilities, asphalt plants and a cement terminal.

The CMA said it is concerned that competition in the sup - ply of non-specialist ag gre - gates, ready-mixed concrete or asphalt could be affected in 15 local markets across the UK.

There are also areas in the east of Scotland where the deal might make it easier for suppliers to align their behaviour and compete less for customers in the region.

“While sufficient competition will remain in most areas, we are concerned that the deal could result in high prices and lower quality products in some areas where Breedon wouldn’t face sufficient competition,” Mr Raftery said.

Breed on, which has five working days to respond or face a phase two probe, said it had completed the acquisition on 31 July.