CMA finds competition risks in Breedon's Cemex deal

27/08/2020 | CHRIS AMES

The competition watchdog has found that Breedon’s acquisition of CEMEX UK gives rise to competition concerns and given the parties five days to propose acceptable undertakings or face an in-depth investigation.

Breedon announced in January that it had agreed a £178m deal to buy approximately 100 Cemex sites, including aggregates quarries, ready-mixed concrete facilities, asphalt plants and a cement terminal, across the UK.

The Competition and Markets Authority (CMA) pointed out that Breedon Group and Cemex are two of the leading producers and distributors of construction materials in the UK and Ireland.

It said that following its Phase 1 investigation, it had found that the deal gives rise to competition concerns in relation to the supply of ready-mixed concrete, non-specialist aggregates or asphalt in 15 local markets across the UK.

It added that in all of these local markets, the two businesses currently have a large presence and compete closely, with limited competition from other suppliers.

Colin Raftery, CMA senior director said: ‘These products are widely used in a range of building projects across the UK, and account for a material part of the construction costs faced by businesses and public bodies. As the majority of these materials are sourced locally, it’s vital to ensure that enough competition will remain at the local level so there’s enough choice and prices remain fair.

‘While sufficient competition will remain in most areas, we are concerned that the deal could result in high prices and lower quality products in some areas where Breedon wouldn’t face sufficient competition.'

The CMA said it also found that the merger could make it easier for cement suppliers in the East of Scotland to align their behaviour, without necessarily entering into any express agreement or direct communication, in a way that limits the rivalry between them. It found that this could result in cement suppliers competing less strongly for certain customers in the region.

‘The CMA is therefore concerned that the deal could result in a substantial lessening of competition, leading to higher prices and lower quality building materials for UK construction projects.’

The CMA said Breedon and Cemex must address its concerns within five working days (from 26 August). ‘If they are unable to do so, the merger will be referred for an in-depth Phase 2 investigation.’

Highways InProfile

latest magazine issue
Highways jobs

Traffic Management Officer - WMF2114e

£37,035 - £37,938
Are you an experienced and motivated professional looking to take the next step in your traffic management career? Cumbria / Various
Recruiter: Westmorland and Furness Council

Senior Transport Planner

£47,532 - £50,574
Royal Greenwich is a borough synonymous with first class modern services Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Technician - Highway Inspector

Grade 8 £28,797 - £30,708 per annum (Pay Award Pending)
Within the Highways Maintenance Team we are looking for an enthusiastic, customer focused and experienced person to join the Service Derbyshire
Recruiter: Derbyshire County Council

Project Delivery Senior Team Leader

£74,480 - £85,964
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification) Glasgow City
Recruiter: Transport Scotland

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
Westmorland and Furness Council is seeking an organised and enthusiastic individual to join our South Lakeland team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bulky Operative

£25,584.00 - £27,269.00, Grade 5, 37 hours, Permanent.
An opportunity exists in the Council’s Street Scene Services for a Bulky Operative Wakefield, West Yorkshire
Recruiter: Wakefield Council

Project Delivery Team Leader

£57,710 - £71,842
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification). Glasgow City
Recruiter: Transport Scotland

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Shared Service Manager (Waste) North Herts Council

£52000 - £61000 per annum
Shared Service Manager (Waste) North Herts CouncilNorth Herts CouncilPermanent, Full Time£52,866 - £61,866 per annum, plus car allowance (pay award pe England, Hertfordshire, Letchworth Garden City
Recruiter: Essex County Council

Street Scene Protection Officer - Braintree District Council

£30000 - £34000 per annum
Street Scene Protection Officer - Braintree District CouncilBraintree District CouncilPermanent, Full Time£30,313 to £34,612 per annumLocation
Recruiter: Essex County Council

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
This is a key support role, helping to deliver a wide range of traffic and road safety schemes across South Lakeland. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Flood Risk Engineering and Strategy Officer

£49,764 - £55,623
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Senior Integrated Transport Officer

£34,324 - £37,529
Are you an experienced transport planning professional ready to influence strategic policy and drive real change Matlock, Derbyshire
Recruiter: Derbyshire County Council

Roadworker Trainee LGV Driver (3 Posts)

Grade 6 £25,183 - £25,638 per annum (Pay award pending)
We’re looking for Roadworker/trainee LGV drivers to be part of our team undertaking major highway, bridge and related construction and reconstruction Derbyshire
Recruiter: Derbyshire County Council

Engineer

£44,430 - £51,663
This post is within the Highways Design and Delivery Team. London (Greater)
Recruiter: Tower Hamlets London Borough Council

Civil Enforcement Officer - WMF3013e

£27,711 -£28,624
Are you seeking an active and challenging role, part of a friendly and welcoming team? Cumbria / Various
Recruiter: Westmorland and Furness Council

UGO Bus Driver

Up to £25081.00 per annum
UGO Bus DriverPermanent, Part TimeUp to £25,081 per annum (full time equivalent)Location
Recruiter: Essex County Council

Head of Highways Operations

Salary
Somerset Council
Recruiter: Somerset Council

Works Technician

£37,399 (plus unsocial hours allowance)
The Works Technician is responsible for ensuring that the London Trams civils and off-track infrastructure Croydon (City/Town), London (Greater)
Recruiter: Transport for London
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW