Tarmac takeover cleared

By THIS IS MONEY
Updated:

 

The UK government on Wednesday said it cleared Anglo American $2 billion takeover of Tarmac after Anglo promised to sell assets to reduce its market share. Competition and Consumer Affairs Minister Kim Howells said he accepted the advice of the Office of Fair Trading not to refer the deal to the Competition Commission following undertakings by the mining giant.

Anglo promised to cut its market share for aggregates and asphalt to 33% within a 30 mile radius of its quarries and for mortar to 40% within 10 miles of its plants. It will reduce its share for ready-mixed concrete to 40% within 10 miles of its plants, or 50% in areas where there are at least four competitors.

'I invited interested parties to comment on the text of the draft undertakings to the OFT. Following that consultation, the undertakings were revised in some minor respects,' Howells said. Howells had said he would refer Anglo's agreed takeover of Tarmac to the Competition Commission unless Anglo agreed to make disposals.

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