Response to Competition Authority's Report

RNS Number : 2855W

Breedon Aggregates Ld

26 April 2016

 

   News release

26 April 2016

Breedon Aggregates Limited

("Breedon Aggregates", "Breedon" or the "Company")

Response to Competition Authority's report on its Investigation

into Acquisition of Hope Construction Materials Limited ("Hope")

Breedon Aggregates welcomes today's announcement from the Competition and Markets Authority ("CMA") that it has reasonable grounds for believing that the undertakings offered by Breedon in connection with its proposed acquisition of Hope, or a modified version of them, might be acceptable. 

In line with our previous guidance, these undertakings will require the divestment of 14 ready-mixed concrete plants currently owned by Breedon and Hope.

The Company fully expects to be able to finalise the required undertakings to the CMA's satisfaction and complete the required divestments in the near future, paving the way for completion of the acquisition later this summer.

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Note to editors

Breedon Aggregates is the largest independent aggregates business in the UK after the four global majors.  It operates more than 50 quarries, nearly 30 asphalt plants, around 60 ready-mixed concrete plants and three concrete block plants in England and Scotland and employs approximately 1,200 people.  The group has strong asset backing, with over 500 million tonnes of mineral reserves and resources in the UK.  Breedon Aggregates' strategy is to continue growing organically and through consolidation of the UK heavyside building materials sector.

In November 2015 Breedon announced its intention to acquire Hope Construction

Materials Limited for £336 million. The acquisition is expected to complete later this summer, creating the UK's largest independent building materials group with one of the country's largest cement plants, around 60 quarries, more than 200 ready-mixed concrete plants and approximately 750 million tonnes of mineral reserves and resources.

For further information:

Breedon Aggregates Limited

Pat Ward, Group Chief Executive

Rob Wood, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities (NOMAD and Joint Broker)

Max Hartley, 020 7397 8900

Peel Hunt (Joint Broker)

Justin Jones / Mike Bell, 020 7418 8900

 

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