Breedon agrees disposal of 14 sites for £12.2m

Construction materials group Breedon has agreed to dispose of certain assets to Tillicoultry Quarries for £12.2m, as it looks to satisfy the Competition and Markets Authority’s conditions following the purchase of Cemex assets.

The 14 sites to be divested include 10 ready-mixed concrete plants and an asphalt plant and associated aggregates depot in England, and two quarries and a cement terminal in Scotland. Breedon said the earnings of the assets being disposed are not material to group.

Breedon is disposing of the assets to address the CMA's concerns that its purchase of certain assets from Cemex will lessen competition in some areas. Completion of the disposal is subject to final confirmation by the CMA following a public consultation.

The company said it expects to be in a position to complete the disposal before the year end. Following completion, Breedon will integrate the remaining former Cemex UK assets into its existing operations and implement its plans "for performance improvement to deliver value from the acquisition".

Chief executive Pat Ward said: "We are very pleased with the outcome of this process and believe it is in the interests all stakeholders.

"It allows Breedon to realise fair value for the assets disposed of which, together with the people employed in them, will be in good hands under new ownership of Tillicoultry Quarries."

Breedon announced in January that it had agreed to buy Cemex’s assets and operations in the UK for £178m.