On 21 February 2012, the Competition Commission (CC) announced adverse provisional findings on the Anglo American/Lafarge construction materials joint venture.
The CC has provisionally found that the proposed joint venture would give rise to a substantial lessening of competition in relation to the supply of bulk cement, as it would make coordination in that market more likely. It would also increase the effectiveness and sustainability of any pre-existing coordination.
The CC has also provisionally found that the joint venture could lead to a substantial lessening of competition in the national markets for the supply of rail ballast and high purity limestone, and in 23 local markets for the supply of primary aggregates for construction applications, two local markets for the supply of asphalt and seven local markets for the supply of ready-mix concrete.
The CC is now seeking views on remedies to address the competition issues. Options being considered include the outright prohibition of the joint venture, the prohibition of inclusion of cement and ready-mix concrete operations in the joint venture, and the divestment of problematic aggregates, asphalt and ready-mix overlaps. Interested parties are invited to comment on the proposed remedies by 6 March 2012 and on the CC's provisional findings by 13 March 2012.
Should the CC make a final decision to prohibit the joint venture, the parties may choose to apply to the Competition Appeal Tribunal (CAT) for a review of the merger decision (expected by 1 May 2012). The application for review must be filed with the CAT within four weeks of the date of the decision. The CAT may then dismiss the application, quash the whole or part of a decision to which the application relates, or refer the matter back to the CC with a direction to reconsider and make a new decision.
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