Lafarge Tarmac fights cement plant sale ruling

Aaron Morby 10 years ago
Share

Cement and aggregates giant Lafarge Tarmac has launched an appeal against a ruling to force it to hive off one of its five cement works and several ready-mixed concrete plants.

The firm has taken its case the the Competition Appeal Tribunal calling for part of a Competition Commission ruling to be quashed.

This includes its key finding of business procedures having an adverse effect on competition in cement as well as demanding the sale of businesses including either the Cauldron or Tunstead cement works.

In a detailed submission Lafarge Tarmac argues the Commission’s finding were flawed on several counts.

This included the Commission’s failure to disclose critical evidence to the materials giant and what it alleges is insufficient evidence of market co-ordination.

Lafarge Tarmac also argues that the stipulation that the cement business must be sold to a non UK  or fifth supplier would prevent it obtaining a fair value for the works.

Meanwhile, Hope Construction has also launched an appeal that seeks to allow it freedom to buy Lafarge and Tarmac assets that may be placed onto the market.

It argues that as a newcomer to the market dominated by the big four – Aggregate Industries, Cemex, Hanson, Lafarge Tarmac – it should not be barred.

The measures followed a two-year probe that found that both structure and conduct in the cement sector restricted competition by aiding coordination between at the time the three largest producers – Lafarge Tarmac, Cemex and Hanson.

The Competition Commission said these producers have refrained from competing vigorously with each other by focusing on maintaining market stability and their respective shares.

It estimates that higher prices resulting from this lack of competition costs construction at least £30m a year for cement and a further £15-£20m for pulverised fuel ash.

 

 

 

Latest news

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
1 day ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
1 day ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
1 day ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
1 day ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
1 day ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
2 days ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
2 days ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
2 days ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
2 days ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
3 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
2 days ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
3 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
2 days ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
2 days ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
3 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
3 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
4 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
3 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
3 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
3 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
4 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
4 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
4 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
5 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
4 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
5 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
4 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
5 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
5 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
5 days ago

Contractor services