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Heidelberg Materials approved for Mick George acquisition

Heidelberg

Heidelberg Materials has been given the green light to proceed with its acquisition of Mick George Group after making some concessions to the Competition and Mergers Authority. 

Heidelberg Materials announced its intention to acquire earthmoving and demolition waste recycling contractor Mick George Group in 2022 before the CMA launched an investigation last year into whether the deal would impact the building materials market in England’s East and the East Midlands. 

Heidelberg Materials had publicly said the acquisition was targeted at its circular economy approach.  

“With the acquisition of the Mick George business, we are clearly moving towards establishing a truly circular materials and services offer in our UK business,” Jon Morrish, member of the managing board, said at the time.  

The CMA had previously indicated publicly that it would be open to the two companies putting forward a resolution.  

“In many areas where both businesses are active, sufficient competition will remain. But in some local markets, where there are not enough strong alternatives to the merging business, the deal could limit customer choice,” CMA Senior Director for Mergers Colin Raftery said at the time. 

“Unless the companies put forward a solution, we will need to take a deeper look into the potential impact of reduced competition in these local areas.” 

Heidelberg and Mick George will divest parts of both businesses to Essex-based Brice Aggregates and Peterborough-based P J Thory. Heidelberg Materials and Mick George’s proposal was approved by the CMA, which allowed the acquisition to proceed.  

Brice Aggregates will be the upfront buyer of Heidelberg Materials’ Needingworth quarry, while PJ Thory Holdings will buy the remaining divestment sites, according to the CMA report. 

This includes ready-mix concrete businesses in Northampton, Market Harborough, Wellingborough, St Ives (Peterborough) and Ely. Also divested were the Earls Barton Quarry, Watlington Quarry and Kettering’s Ringstead Grange Quarry. 

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