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.