{"id":69934,"date":"2016-04-26T06:00:05","date_gmt":"2016-04-26T06:00:05","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=a49061c3ac31dd43e85640137de0502f"},"modified":"2016-04-26T06:00:05","modified_gmt":"2016-04-26T06:00:05","slug":"press-release-cma-to-consider-breedon-undertakings","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=69934","title":{"rendered":"Press release: CMA to consider Breedon undertakings"},"content":{"rendered":"
\n

Earlier this month<\/a>, the Competition and Markets Authority (CMA<\/abbr>) announced that Breedon<\/abbr> Aggregates Limited\u2019s (Breedon<\/abbr>) anticipated acquisition of Hope<\/abbr> Construction Materials Limited (Hope<\/abbr>) could give rise to competition concerns in relation to 27 ready-mixed concrete (RMX<\/abbr>) sites. <\/p>\n

The CMA<\/abbr> added that Breedon<\/abbr> could avoid the acquisition being referred for an in-depth phase 2 merger investigation – if it offered an acceptable solution to address the competition concerns in those local areas where the sites are located. <\/p>\n

As a result, Breedon<\/abbr> has proposed undertakings to the CMA<\/abbr> to divest 14 RMX<\/abbr> sites to an up-front buyer approved by the CMA<\/abbr>. The CMA<\/abbr> has decided that there are reasonable grounds for believing that the undertakings offered by Breedon<\/abbr>, or a modified version of them, might be accepted by the CMA<\/abbr>. <\/p>\n

The CMA<\/abbr> now has until 23 June 2016 to consider whether to accept the undertakings, or a modified version of them, although the CMA<\/abbr> may decide to extend this deadline to 25 August 2016 if it considers there are special reasons for doing so. <\/p>\n

As part of this consideration process, the CMA<\/abbr> will undertake a public consultation on whether the proposed undertakings are sufficient to address the competition concerns. If the undertakings are not accepted, the acquisition will be referred for a phase 2 merger investigation. <\/p>\n

Both Breedon<\/abbr> and Hope<\/abbr> produce and supply aggregates and RMX<\/abbr>. Aggregates are used in the construction of roads, buildings, bridges and other infrastructure – as well as in the production of RMX<\/abbr>, concrete products and asphalt. RMX<\/abbr> is concrete which is produced in a freshly-mixed and unhardened state ready for use on site. The 2 companies operate over 200 RMX<\/abbr> sites across England, Wales and Scotland. <\/p>\n

Notes for editors<\/h3>\n
    \n
  1. The CMA<\/abbr> is the UK\u2019s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. \t<\/li>\n
  2. \nBreedon<\/abbr> produces and supplies aggregates, asphalt, RMX<\/abbr> and concrete blocks in the UK and Hope<\/abbr> produces and supplies cement, RMX<\/abbr>, and aggregates in UK. Breedon<\/abbr>\u2019s completed acquisition of certain assets of Aggregate Industries UK Limited<\/a> was previously investigated by the Office of Fair Trading and Competition Commission. <\/li>\n
  3. The Reference Test: under the Enterprise Act 2002 (the Act<\/abbr>) the CMA<\/abbr> has a duty to make a reference to phase 2 if the CMA<\/abbr> believes that it is or may be the case that a relevant merger situation has been created, or arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.<\/li>\n
  4. Under the Act<\/abbr> a relevant merger situation is created if 2 or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds \u00a370 million (\u2018the turnover test\u2019) or as a result of the transaction, in relation to the supply of goods or services of any description, a 25% share of supply in the United Kingdom (or a substantial part thereof) is created or enhanced (\u2018the share of supply test\u2019).<\/li>\n
  5. The CMA<\/abbr>\u2019s duty to refer the merger for a phase 2 investigation under the Act<\/abbr> is not exercised whilst the CMA<\/abbr> is considering whether to accept undertakings (if offered) in lieu of a reference. <\/li>\n
  6. Enquiries should be directed to Siobhan Allen (siobhan.allen@cma.gsi.gov.uk<\/a>, 020 3738 6798).<\/li>\n
  7. For information on the CMA<\/abbr> see our homepage<\/a>, or follow us on Twitter @CMAgovuk<\/a>, Flickr<\/a> and LinkedIn<\/a>. Sign up to our email alerts<\/a> to receive updates on merger cases.<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    The CMA will consider in detail whether to accept undertakings offered by Breedon instead of carrying out an in-depth merger investigation.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/69934"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69934"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/69934\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}