LONDON - The UK's Competition and Markets Authority (CMA) has expressed concerns over Hanson Quarry Products Europe's proposed acquisition of Midland Quarry Products (MGL), and a £220m turnover contractor Mick George, which specializes in earthmoving and demolition waste recycling. The CMA cites potential competitive threats in the aggregates, ready-mix concrete markets, and demolition waste recycling across East England and the East Midlands. The CMA's initial investigation warns that the merger could limit competition in these regions, potentially leading to higher construction costs for both private and public sector projects.
The scrutiny comes as Hanson, a HeidelbergCement (ETR: HEIG ) subsidiary, aims to consolidate its position in the UK construction materials market through the takeover of MGL and Mick George. The CMA has identified 18 areas where the merged entity would hold significant market control, raising red flags about reduced choice for local customers and possible price hikes for essential construction materials.
Colin Raftery from the CMA emphasized the importance of maintaining robust competition to prevent negative impacts on regional construction activities. He stressed that without a diverse market, businesses and public organizations could face increased expenses for non-specialist aggregates, concrete supplies, and demolition waste recycling—materials critical for a range of construction projects.
Hanson is now under pressure to propose effective remedies by Nov 29 to address the CMA's concerns. Failure to provide satisfactory solutions could trigger a more thorough phase 2 investigation by the competition authority into the merger's impact on supply dynamics within the construction sector. Hanson's extensive network of facilities and its potential combined strength with MGL and Mick George have put the spotlight on the need for careful consideration of market dynamics to ensure fair pricing and availability of construction materials.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.