Saturday 16th Jan, 2021

ACCC clears Barro’s investment in Adelaide Brighton

New national safety guidelines for Australia’s heavy construction materials industry have been released to help protect employees, contractors and the community during the COVID-19 outbreak.

The Australian Competition & Consumer Commission (ACCC) has released the results of its investigation into the completed acquisition of a 43 per cent stake in cement manufacturer, Adelaide Brighton, by Barro Group.

Barro Group, a family owned construction materials supplier and distributor, acquired a 43 per cent stake in Adelaide Brighton over a number of years.

Adelaide Brighton is an ASX listed manufacturer and supplier of a range of products for the construction, infrastructure and mineral processing markets around Australia.

The two companies each own 50 per cent of Independent Cement and Lime, a supplier of cement and cement-blended products throughout Victoria and New South Wales.

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.

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It 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,” said ACCC Commissioner Stephen Ridgeway.

“Major rival cement, aggregates and pre-mixed concrete suppliers will continue to provide competition,” he said.

The ACCC’s investigation 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.