Both companies produce and supply aggregates and ready-mixed concrete (RMX), are major competitors in RMX and operate over 200 RMX sites across England, Wales and Scotland.
An initial investigation by the CMA ruled out any competition concerns over the production and supply of aggregates but said the transaction gives rise to competition concerns in relation to 27 RMX sites.
The authority said customers might face higher prices as a result of the merger in the local areas surrounding these sites and, unless Breedon can address these concerns, it will refer the acquisition for an in-depth phase two investigation by an independent group of CMA panel members.
Sheldon Mills, Senior Director of Mergers at the CMA and a decision-maker in the initial investigation, said: “Ready-mixed concrete is an essential product for a wide range of construction projects of all sizes in the public and private sectors.
“The vast majority of the merger raises no concerns but there are a number of areas where the companies compete strongly with each other for customers and the concern is that the loss of such rivalry could lead to price rises for customers.
“The businesses may now resolve these concerns or face a detailed investigation.”
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