Breedon Aggregates Limited (LON:BREE) plans to address concerns raised by the Competition and Markets Authority (CMA) about its proposed acquisition of Hope Construction Materials.
The CMA completed its Phase 1 review of the proposed acquisition and concluded there is a realistic prospect of a substantial reduction in competition in a limited number of local ready-mixed concrete markets in England and Scotland.
Breedon said the verdict was not unexpected, and it now has a short period in which to submit proposals that would placate the CMA.
Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later this summer in line with previous guidance.
Breedon agreed last year to buy Hope for £336mln on a cash-free and debt-free basis.
Hope is a leading independent construction materials supplier in the UK with a national footprint of over 160 operational sites, including the Hope cement works in Derbyshire, five quarries and 152 concrete plants.