Competition fear over Tarmac Breedon concrete plants swap

The competition watchdog has raised concern about Tarmac’s deal with Breedon to swap four quarries for 27 ready mixed concrete plants.

The Competition and Markets Authority said that its initial review of the proposed deal raised competition concerns in the supply of ready-mixed cobncrete in the Cardiff, Bridgend and Carnforth areas, where both companies are close rivals.

It warned that the lack of other strong suppliers of ready-mixed  in these areas could mean that customers would face increased prices or a worse quality of service as a result of the proposed merger.

At the same time it cleared Breedon’s plans to acquire four quarries and an asphalt plant from Tarmac.

Tarmac now has until 3 May to address the concerns to prevent the merger being referred for an in-depth  investigation by an independent group of CMA panel members.

Quarries being exchanged are located in Scotland, Cumbria and North Wales, together with a quarry and asphalt plant in West Wales.

Ready-mixed concrete operations being offloaded from Breedon’s network of 200 plants are in multiple locations extending from Dumfries in Scotland to Exeter in Devon. 

Tarmac assets

            Daviot Quarry, Inverness

            Low Plains Quarry, Penrith

            Borras Quarry, Wrexham

            Minffordd Quarry & Asphalt Plant, near Porthmadog

 

Breedon ready-mixed concrete plants

           

Alrewas                                                           Llandybie

Banbury                                                           Llanelli

Boroughbridge                                                Llynclys

Bournemouth                                                  Meriden

Bridgend                                                          Pembroke

Briton Ferry                                                     Portsmouth

Cardiff                                                             Scorton

Cardigan                                                         Shawell

Carmarthan                                                     Southampton

Colchester                                                      Stancombe

Dumfries                                                         Tongwynlais

Dunald Mill                                                       Tredegar

Exeter                                                              Wellington

from Construction Enquirer http://www.constructionenquirer.com/2018/04/26/competition-fear-over-tarmac-breedon-concrete-plants-swap/

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