(Alliance News) -Â Breedon Group PLC on Monday said it has agreed the sale of some assets to satisfy UK Competition & Markets Authority concerns over a proposed acquisition.
In October, the CMA said there were "reasonable grounds" to believe that undertakings offered by Breedon could be accepted for the purchase of Cemex's UK operations.
Breedon had announced the GBP178 million purchase of the UK assets of Mexican building materials peer Cemex SAB de CV back in January. At the time, it said it expected the purchase to be completed in the second quarter of 2020.
In August, the UK regulator said that, following its initial phase one investigation, it had found that the deal gives rise to competition concerns in relation to the supply of ready-mixed concrete, non-specialist aggregates or asphalt in 15 local markets across the UK.
Further to the October announcement, Breedon said it has agreed the sale of 14 sites to Tillicoultry Quarries Ltd for GBP12.2 million.
The sites to be sold include 10 ready-mixed concrete plants and an asphalt plant and associated aggregates depot in England, and two quarries and a cement terminal in Scotland. The earnings of the assets being disposed of are "not material" to the group, said Breedon.
"Completion of the disposal is subject to final confirmation by the CMA, following a public consultation inviting interested parties to submit their views, that it will accept the undertakings offered by Breedon in lieu of a Phase 2 reference and the approval of Tillicoultry Quarries Ltd as a purchaser for the assets," said Breedon.
The company expects to be in a position to complete the disposal before the end of the year. After completion, Breedon will integrate the remaining former Cemex UK assets into its existing operations.
Breedon shares were up 2.1% at 77.80 pence early Monday in London.
By Lucy Heming;Â lucyheming@alliancenews.com
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Breedon (BREE)