Breedon ordered to sell Scottish plants

Grant Prior 11 years ago
Share

Breedon has been ordered to sell two of its Scottish plants by competition watchdogs.

The Competition and Markets Authority said the firm must sell an asphalt plant in the Aberdeen area and a ready-mix concrete plant in Peterhead area.

It will also face a price control for asphalt produced in the Inverness area.

The move follows fears of a lack of price competition in north east Scotland after Breedon bought 18 sites from Aggregate Industries in April 2013.

Simon Polito, Chair of the Inquiry Group and CMA Deputy Chair, said: “Both these products are vital for construction projects and road building, much of which is funded by the public purse.

“It is therefore important to ensure customer interests are protected, which we are doing through the plant sales and price control.

“The markets for these products are local so the loss of a competitor in even a relatively small area matters – particularly 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.”

Breedon said: “The Company will now work with the CMA to finalise the terms of these divestments and undertakings within 12 weeks.

“Breedon has every intention of reaching agreement with the CMA as quickly as possible, in order that it can expedite the sale of the assets concerned and proceed with the full integration of the former AI businesses.”

Latest news

Mace construction head steps down

Andrew Jackson leaves top role after three months
57 mins ago

Multiplex in talks for ISG’s £70m London offices to labs job

Plan to restart Regent Quarter life science campus with ISG project team
3 hours ago

M&E firm goes under after more than 70 years in business

HBS Group Southern employed 75 staff
19 hours ago

Trio of big names win £600m biscuit factory revamp

Developer Greystar confirms deals for McLaren, McAleer & Rushe and Sisk
21 hours ago

HS2 London tunnels chief joins Transpennine Route Upgrade

James Richardson will take up MD role at TRU in New Year
3 hours ago

Transport minister signals HS2 will run to Euston

Decision expected in spending review and budget later this month
19 hours ago

£9bn Lower Thames Crossing decision delayed 7 months

Fears grow mega project could be axed in upcoming Budget
20 hours ago

Vistry issues profit warning over build out costs at southern division

Probe launched after £115m hit on 9 schemes where build costs under estimated by 10%
1 day ago

ISG administrator tells subbies no funds to pay debts

EY warns trade creditors they are unlikely to see any of the cash they are owed
1 day ago

Giga factory powers McAlpine to top of contracts league

Work winning for the top 50 firms rebounded in September after August lull
1 day ago

Merit to build £30m modular NHS medicines centre

Specialist starts work on offsite components
1 day ago

Buckingham supply chain hit soars above £300m

Unpaid bills from unsecured creditors keep mounting
2 days ago

Mapping experts take control of buried pipes register

Ordnance Survey to help ensure safe digging and excavation
1 day ago

Winners of £3bn London housing major works deal

Graham, Kier, McLaren, Morgan Sindall, Vinci and Wates win places
2 days ago

BBC brickies firm went down owing £2m to suppliers

Hodgkinson Builders sold for £95,300 in pre-pack deal
2 days ago

Network Rail reveals top suppliers spend

BAM leads as biggest civils rail contractor
2 days ago

Go-ahead for £125m Immingham Ro-Ro terminal

Dragados is lined up to deliver the terminal which includes three new berths
2 days ago

Renew buys onshore wind firm for £50m

Full Circle deal adds 160 specialist technicians to workforce
2 days ago

New construction boss for Robertson North East

Neil Kennedy promoted to MD of Gateshead-based regional operation
2 days ago

Civils work fuels fastest output rise in two-and-a half years

Construction buyers see September surge
5 days ago

Barratt £2.5bn takeover of Redrow clears final hurdle

House building giants merger plan gets go-ahead after competition probe
4 days ago

Renew sells Walter Lilly building arm

100-year-old building business sold to luxury contractor Size
5 days ago

Work to start on Teesside and Merseyside carbon capture schemes

Government commits £22bn funding to world's first industrial-scale carbon capture projects
5 days ago

Flagship £200m London Premier Inn scheme approved

700-bed hotel to be built on the Strand near Trafalgar Square
5 days ago

Kilnbridge appoints new construction director

Former McGee director Darren Wickins joins concrete frame specialist
5 days ago

HS2 trial to replace cement with baked clay

Extra funding for programme to replace cement in concrete with calcined clay
5 days ago

Subcontractors wanted across the South West

Register now for latest Constructionline event in Bristol
5 days ago

Galliford Try profits and revenue surge

Release of delayed building jobs and surging water spend boosts firm
6 days ago

Octavius Infrastructure national expansion push pays off

Revenue leaps 28% to £277m with order book at over £1bn
6 days ago

Skanska staff get access to digital doctors

Contractor launches benefit for staff and their families
6 days ago

Contractor services