The ACCC has completed its investigation into the completed acquisition of a 43 per cent stake in Adelaide Brighton (ASX:ABC) by Barro Group and its related entities.
Barro Group (and its related entities) acquired a 43 per cent stake in Adelaide Brighton over a number of years.
The ACCC examined the completed acquisition closely because the two vertically integrated companies have overlap in the market for the supply of cement, pre-mixed concrete and aggregates.
Its investigation found Barro and Adelaide Brighton will continue to face competition from Boral, Holcim and Hanson, three large vertically integrated competitors with national operations, along with a number of smaller independent competitors.
"On the basis of the information we have available to us, Barro's stake in Adelaide Brighton will not substantially lessen competition. Major rival cement, aggregates and pre-mixed concrete suppliers will continue to provide competition," ACCC Commissioner Stephen Ridgeway said.
The ACCC closely considered competition impacts on the pre-mixed concrete and aggregates markets in Melbourne, Brisbane and Townsville, where Barro and Adelaide Brighton's operations overlap and did not identify any areas of concern.
Barro did not seek informal merger clearance from the ACCC prior to acquiring Adelaide Brighton.
The ACCC may reopen its investigation if it receives further information that alters its current conclusions.
Further information is available at Barro Group - completed acquisition of a 43 per cent interest in Adelaide Brighton.
Background
On 24 October 2019 the ACCC commenced a review of the completed acquisition.
Barro Group is a family owned construction materials supplier and distributor with operations predominantly in Victoria and Queensland. Barro Group's operations include the supply of pre-mixed concrete, quarry materials, cement, builders' supplies, concrete roof tiles and concrete precast panels. Barro Group's main pre-mixed concrete brand in Victoria is the "Pronto" brand.
Adelaide Brighton is an ASX listed manufacturer and supplier of a range of products to the building, construction, infrastructure and mineral processing markets across Australia. Adelaide Brighton's operations include the supply of clinker, cement, industrial lime, premixed concrete, quarry materials, cement and concrete products. Adelaide Brighton supplies the "Hytec" pre-mixed concrete brand.
Barro Group and Adelaide Brighton each own 50 per cent of Independent Cement and Lime, a supplier of cement and cement-blended products throughout Victoria and New South Wales. Independent Cement and Lime subsidiaries also provide ground blast furnace slag, bagged cement, drymix products and other building products.
