Breedon faces selling three operations in Scotland

Aaron Morby 9 years ago
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Material producer Breedon may have to sell asphalt and ready-mix concrete operations in three areas of north-east Scotland as a result of a Competition Commission investigation.

The Commission has warned that customers could face higher prices following Breedon’s acquisition of Aggregate Industries operations.

Now it may have to dispose of a ready-mixed concrete plant in the Peterhead area and an asphalt plant in the Aberdeen area, and also give undertakings in respect of an asphalt plant in the Inverness area.

Breedon bought 11 aggregate quarries, four asphalt plants, nine ready-mixed concrete plants and two concrete block factories last April.

Aggregate Industries and Breedon were previously main competitors for many of these products across north-east Scotland.

Simon Polito, chairman of the inquiry group, said: ‘The nature of these products means the markets are local—they are expensive to transport and additionally ready-mixed concrete has a short shelf life.

“So the loss of a competitor in even a relatively small area matters when the cost and proximity of the production site are the most important factors for customers and in a market where most prices are negotiated.

“We now want to look in detail at what measures will protect the interests of customers. This is likely to involve the sale of asphalt and ready mixed concrete sites in the affected areas.”

The Commission will publish its full findings in May.

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