A number of concrete ready-mix plants are due to be sold by Breedon Aggregates in preparation of its acquisition of Hope Construction Materials.

The company secured a deal to takeover Hope Construction for £336 million in November 2015.

An investigation by the Competition and Markets Authority (CMA) warned that the acquisition raised competition concerns in relation to 27 RMX sites, meaning customers in local areas could face higher prices as a result of the merger.

However, the CMA ruled out any competition concerns over the production and supply of aggregates or cement.

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Sheldon Mills, CMA Senior Director of Mergers, 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."

In a statement, Breedon said: "This outcome is in line with Breedon's expectations and the Company now has a short period during which to offer remedies to address the CMA's outstanding concerns. 

"Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later this summer in line with previous guidance."

(LM/MH)