Watchdog rules Breedon may have to sell some plants

6th Feb 2014 13:26

Breedon Aggregates, the UK largest independent aggregates business, saw its shares fall after it said it may have to sell asphalt and ready-mix concrete plants in three areas of northeast Scotland following a probe by the Competition Competition (CC). The CC's investigation focused on the impact of Breedon's purchase of a clutch of assets in northeast Scotland from Aggregate Industries. The acquisition was completed last April. The CC is concerned some customers could be hit by higher prices as a result of the deal. The watchdog has provisionally ruled Breedon may have to dispose of a ready-mixed concrete plant in the Peterhead area and an asphalt plant in the Aberdeen area, and may need to give undertakings in respect of an asphalt plant in the Inverness area.Breedon has 21 days to respond to the CC's provisional findings and will be discussing arrangements for the possible disposals with the Commission. Following these discussions Breedon will "seek to expedite the sale of such assets as may be required in order to minimise disruption and secure the future of the small number of employees affected".Further announcements by the company will be made in due course.Breedon plans to release its full year results for the year ending December 2013 on Tuesday March 4th 2014. The company added that it "finished 2013 strongly and the board remains confident of making further progress in 2014".In midday trade Breedon shares were off 2p or nearly 5% to 38.25p, valuing the company at £385m. KP