The Competition and Markets Authority (CMA) has approved clearance for Breedon Aggregates to acquire Hope Construction Materials.

The company expects to complete the £336 million deal on 01 August, which will see it operate over 200 readymix (RMX) sites across England, Wales and Scotland.

Competition concerns were raised by the CMA in relation to 27 RMX sites as customers might have faced higher prices as a result of the merger in the local areas surrounding the sites.

The CMA has today, 27 July accepted a remedy put forward by Breedon which will see it sell 14 RMX sites to Tarmac and the Concrete Company. The announcement means the deal can go ahead without an in-depth merger investigation.

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The new Group will comprise of three divisions:

• Breedon Northern will combine Breedon's Scottish operations with Hope's aggregates and ready-mixed concrete operations in Scotland and the north of England.

• Breedon Southern will combine Breedon's operations in England and Wales with Hope's remaining aggregates and ready-mixed concrete operations.

• Hope Cement will comprise all of Hope's cementitious assets.

Breedon's Chairman, Peter Tom CBE, said: "The way is now clear for Hope to join us and create the UK's largest independent construction materials group.  It will give us a stronger platform for growth, with a broader geographical footprint, increased scale, an improved product mix, greater financial capacity and a team of highly talented people.

"We look forward to working with our new colleagues to deliver an even better and more comprehensive service to our customers in the years ahead."

(LM/CD)