Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: U.S. cement plants must be divested before FTC approves German and Italian cement producers’ merger, (Jun 17, 2016)

By Jody Coultas, J.D.

The FTC announced today that German cement producer HeidelbergCement AG and Italian producer Italcementi S.p.A. agreed to divest a cement plant in Martinsburg, WV and up to 11 cement distribution terminals in six other states to settle charges that their proposed merger would likely harm competition in five regional markets for cement in the U.S. The companies are currently the second and fourth largest producers of cement in the world, respectively.

According to the FTC complaint, the merger would harm competition for portland cement in five metropolitan areas (Baltimore-Washington, DC; Richmond, Virginia; Virginia Beach-Norfolk-Newport News, Virginia; Syracuse, New York; and Indianapolis, Indiana) by reducing the number of competitively significant suppliers from three to two. The FTC alleged that the merged firm would be more likely to unilaterally raise prices in these markets and that it would be easier for the remaining firms to coordinate increased prices.

The proposed consent agreement requires the divestitures must occur within 120 days after the merger is complete.

News: AcquisitionsMergers FederalTradeCommissionNews