Thu, 19 Nov 2015 | BUSINESS SALE
Building materials firm Breedon Aggregates has agreed to buy a rival for £336 million.
However, the acquisition of Hope Construction Materials, which would add a further 160 operational sites to its already huge portfolio of UK assets, has come at a price. Breedon has revealed that it is facing the prospect of having to offload a number of concrete plants to satisfy the UK’s anti-monopoly watchdog.
The Competition and Markets Authority (CMA) works to ensure companies now relax a stranglehold of the market so there is room for competitors to trade as well. Breedon's purchase of Hope Construction Materials could infringe upon the CMA's policies, meaning it is going to have to scale back its expanded operations.
At present Breedon has 59 concrete plants in the UK, but that number will rise to 211 once the takeover goes through. It would be the second time that the CMA has had to intervene following one of Breedon's business acquisitions, the first being when the Derby-based firm bought Aggregate Industries UK’s Scottish assets for £34 million.
Breedon chief executive Simon Vivian confirmed: "We do not produce cement, they [Hope] do not produce asphalt. Also, their quarries do not overlap with ours.
"But there is some overlap with concrete. We are likely to have to sell some UK concrete plants."
Find a business for sale
This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.
RELOCATABLE
Precision Engineering Business for sale operating with a modern, well equipped machine shop, offering Engineering Development Modelling (EDM), CNC turning & milling, grinding, boring and fitting. Offers invited.
LEASEHOLD
High quality practice with strong middle management on the market for the first time. Established: 25 to 30 years. Strong middle-tier management to support acquirer throughout the transition period and on an ongoing basis. Locations: Cheshire, Mersey...
|
20
|
|
Sep
|
Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE
Thomas Cook Group is reportedly trying to piece together a l...
|
19
|
|
Sep
|
Smith & Williamson and Tilney to merge | MERGER
After revealing in August this year that talks were in place...
|
18
|
|
Sep
|
Infrastructure investment manager takes stake in LJLA | BUSINESS SALE
Infrastructure investment management group, Ancala Partners,...
Sign up to receive our acquisition alert emails to get your FREE guide
|
11
|
|
Apr
|
Marshalls to sell quarries to Breedon Aggregates | BUSINESS SALE
Marshalls has confirmed that it has plans to sell four of it...
|
15
|
|
May
|
Rouse Readimix takeover proves successful | BUSINESS SALE
The takeover of Rouse Readimix by Breedon Aggregates in 2011...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources