Construction materials group Breedon has agreed the sale of 14 sites in order to comply with a competition ruling following its acquisition of Cemex UK.
The sale to Tillicoultry Quarries Limited for £12.2m covers 10 ready-mixed concrete plants and an asphalt plant and associated aggregates depot in England, as well as two quarries and a cement terminal in Scotland.
Breedon Group said the earnings of the assets being disposed of are 'not material' to it.
The firm said it is divesting the assets at the direction of the Competition and Markets Authority (CMA) in order to address the CMA’s concerns that its purchase of assets fro CEMEX UK gives rise to a realistic prospect of a substantial lessening of competition in certain areas.
Group chief executive Pat Ward said: ‘We are very pleased with the outcome of this process and believe it is in the interests of all stakeholders.
‘It allows Breedon to realise fair value for the assets disposed of which, together with the people employed in them, will be in good hands under the new ownership of Tillicoultry Quarries.’
Breedon added that completion of the disposal is subject to final confirmation by the CMA, following a public consultation, which the CMA intends to launch shortly.
The company expects to be in a position to complete the disposal before the year-end.
‘Following completion of this disposal, the Group will integrate the remaining former CEMEX UK assets into its existing operations and implement its plans for performance improvement to deliver value from the acquisition,’ a spokesperson said.
Last week the CMA said it was extending its own deadline for consideration of the undertaking given by Breedon to dispose of assets because it ‘involves an upfront buyer’.
