Competition watchdog accepts Breedon takeover of Hope

Breedon ready-mixed-concrete-truckBreedon Aggregates has been cleared to buy rival Hope Construction Materials after the Competition and Markets Authority (CMA) today accepted a remedy to resolve competition concerns arising from the move.

Breedon entered into a conditional agreement with Cortolina Investments to acquire Hope Construction Materials Limited for £336 million in November last year.

The CMA announced in April that it would consider in detail a remedy proposed by Breedon to offload 14 sites, including some in Scotland, to avoid referring the case for an in-depth merger investigation.

Breedon now aims to complete the takeover deal on 1 August after the CMA accepted the proposal.

Both Breedon and Hope produce and supply aggregates and ready-mixed concrete (RMX). The merged entity will comprise three divisions and operate over 200 RMX sites across England, Wales and Scotland.

Breedon Northern will combine Breedon’s Scottish operations with Hope’s aggregates and ready-mixed concrete operations in Scotland and the north of England.

Breedon Southern will combine Breedon’s operations in England and Wales with Hope’s remaining aggregates and ready-mixed concrete operations. The third division covering cement supply from the works in Derbyshire will retain the Hope Cement name.

Breedon’s chairman, Peter Tom CBE, said: “The way is now clear for Hope to join us and create the UK’s largest independent construction materials group.

“It will give us a stronger platform for growth, with a broader geographical footprint, increased scale, an improved product mix, greater financial capacity and a team of highly talented people.”

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