Mergers body clears £178m aggregates deal with selloff of some Scottish assets

The government's mergers watchdog has accepted assurances that an £178m buyout by aggregate company Breedon will not dilute competition in the sector.

The Competition and Market's Authority said that the deal to buy CEMEX assets including its division in Scotland could go ahead with modifications.

The go ahead will require Breedon to sell off two quarries and a cement terminal in Scotland as well as a small number of ready-mixed concrete plants and an asphalt plant in England.

Breedon welcomed the decision and said it expected to finalise the undertakings and complete the selloffs in the near future paving the way for the integration of the CEMEX assets into the group later this year.

Until that time they will continue to be held separate from North Leicestershire-based Breedon and operated as Pinnacle Construction Materials.

The CMA had said the acquisition raised competition concerns in the supply of building materials in some parts of the UK.

There were concerns in relation to the supply of ready-mixed concrete, non-specialist aggregates and asphalt in 15 local markets across the UK. The CMA had also expressed fears other suppliers in the east of Scotland could be in a position to charge more following the changes if there is less rivalry on their patches.