6th Feb 2014 10:25
LONDON (Alliance News) - The UK antitrust regulator Thursday said Breedon Aggregates Ltd may be required to sell asphalt and ready-mix concrete operations in three areas of north-east Scotland after the regulator provisionally found that some customers could face higher prices after Breedon acquisition of a package of Scottish assets from Aggregate Industries UK Ltd.
The Competition Commission said it found that Breedon and Aggregate Industries were previously competitors for many of these products across north-east Scotland and that asphalt customers in Aberdeen and Inverness as well as ready-mix concrete customers in Peterhead, could face higher prices due to the loss of competition and lack of alternative suppliers.
In a separate statement, Breedon, which bought Aggregate Industries' business in northern Scotland last April, said it has three weeks to respond to the provisional findings and will be discussing arrangements for the possible disposals with the Commission.
It said it wants to expedite the sale of any assets that are required in order to minimise disruption and secure the future of the small number of employees affected.
It said it may have to sell a ready-mix concrete plant in the Peterhead area and an asphalt plant in the Aberdeen area and may also need to give undertakings in respect of an asphalt plant in the Inverness area.
In its statement, Breedon added that it had finished 2013 strongly and is confident of making further progress in 2014. It expects to release its full 2013 results March 4.
The Commission said it is required to publish a final report by May 5.
By Steve McGrath; [email protected]; @stevemcgrath1
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