Canada’s Competition Bureau has instructed Quebec-based concrete supplier, Béton Provincial, to divest a ready-mix concrete plant that is part of its pending acquisition of a rival’s Quebec operations. The plant — which is one of the assets CRH Canada Group brings to the deal —shares the Laurentide region market with two of Béton Provincial’s existing plants.
In a decision released last week, the Competition Tribunal deems the sell-off necessary to preserve competition in an area where there is “an insufficient number of alternative suppliers” and onerous barriers for new players to set up production. For its part, Béton Provincial does not endorse that interpretation but has agreed not to contest the Tribunal’s findings and to carry out the divestiture so that the larger transaction with CRH can proceed.
“The Bureau is satisfied that the sale will resolve the competition concerns arising from the proposed transaction,” it states.