Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: CMA considers Breedon’s proposed undertakings in connection with Hope Construction acquisition, (Apr 26, 2016)

By Michael Menzhuber, J.D., LL.M.

The U.K. Competition and Markets Authority (CMA) will consider Breedon Aggregates Limited’s proposed undertakings in connection with its anticipated acquisition of Hope Construction Materials Limited, the agency announced today.

On April 12, the CMA announced that the acquisition could give rise to competition concerns in relation to 27 ready-mixed concrete (RMX) sites. Breedon produces and supplies aggregates, asphalt, RMX, and concrete blocks in the U.K. Hope Construction produces and supplies cement, RMX, and aggregates in the U.K. The two companies operate over 200 RMX sites across England, Wales, and Scotland.

The CMA informed Breedon that it could avoid an in-depth merger investigation of the acquisition if it offered an acceptable solution to address the competition concerns in those local areas where the sites were located. Breedon, in response, proposed undertakings to divest 14 RMX sites to an up-front buyer approved by the CMA.

The CMA has decided that there are reasonable grounds to believe that the undertakings, or a modified version of them, might be acceptable. The agency has until June 23 to consider whether to accept the undertakings, or a modified version of them, but may extend that deadline to August 25 if there are special reasons for doing so.

As part of this consideration process, the CMA will undertake a public consultation on whether the proposed undertakings are sufficient to address the competition concerns.

News: AcquisitionsMergers Antitrust