11th Nov 2020 15:23
(Alliance News) - The UK's competitions watchdog on Wednesday said it considering whether Breedon Group PLC's sale of 14 sites will be enough to allow the building materials firm to complete the acquisition of the UK assets of Mexican peer Cemex SAB de CV.
On Monday, Breedon said it has agreed the sale of some assets to satisfy UK Competition & Markets Authority concerns over the acquisition. Breedon said it has agreed the sale of 14 sites to Tillicoultry Quarries Ltd for GBP12.2 million.
"To address the CMA's concerns, Breedon Group has offered to divest certain assets to Tillicoultry Quarries," the watchdog said on Wednesday.
"On September 10, 2020, the CMA announced that it would look in detail at the undertakings offered by Breedon Group. The CMA has until January 5, 2021 to consider whether to accept the undertakings, or a modified version of them. As part of this process, the CMA is now consulting publicly on whether the proposals are sufficient to address the CMA's competition concerns."
The sites to be sold include 10 ready-mixed concrete plants and an asphalt plant and associated aggregates depot in England, and two quarries and a cement terminal in Scotland. The earnings of the assets being disposed of are "not material" to the group, said Breedon.
The company expects to be in a position to complete the disposal before the end of the year. After completion, Breedon will integrate the remaining former Cemex UK assets into its existing operations.
Breedon shares were 0.3% lower at 81.60 pence each in London on Wednesday.
By Eric Cunha; [email protected]
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