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."
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