Heidelberg Materials UK finalises its acquisition of Mick George Limited after regulatory approval, marking a significant industry shift.
- The deal involved selling eight sites to PJ Thory and Gemmix, aligning with regulatory requirements.
- Competition & Markets Authority (CMA) highlighted market competition concerns, leading to asset sales.
- Heidelberg is focused on increasing recycled aggregate use in building materials.
- The acquisition is expected to drive sustainability in construction waste management.
Heidelberg Materials UK has successfully concluded the acquisition of Mick George Limited, reflecting a strategic milestone in the construction sector. After reaching an agreement with the competition regulator, Heidelberg proceeded to sell eight sites, a decision aligned with compliance mandates from the Competition & Markets Authority (CMA).
Among the sold assets, PJ Thory acquired three quarries located in Norfolk and Northamptonshire, complementing its existing operations. Meanwhile, Gemmix expanded its reach by purchasing five ready-mix concrete sites across Cambridgeshire, Northamptonshire, and Leicestershire. This transaction positions Gemmix as a leading independently-owned supplier of ready-mix concrete throughout the United Kingdom.
Heidelberg’s response to the CMA’s competition concerns was to enact a divestiture plan. This approach was crucial to address potential impacts on market competition in eastern England and the East Midlands. The deal initially envisioned the inclusion of four recycling facilities, eight waste transfer stations, eleven aggregate quarries, and ten ready-mixed concrete plants. However, regulatory intervention necessitated specific asset sales to move forward.
In a notable sale, Brice Aggregates became the new owner of the Needingworth quarry in Cambridgeshire. The chief executive of Heidelberg Materials UK, Simon Willis, expressed enthusiasm for the acquisition’s completion, emphasising its role in promoting recycled aggregate usage in building materials. Willis highlighted the company’s commitment to circular economy principles, aiming to offer sustainable alternatives for a significant portion of its concrete products by 2030.
Willis stated, ‘I am delighted to confirm the completion of the acquisition of MGL, which is an exciting milestone for us. It is a strong fit and represents a major step as we embrace the opportunities the construction waste sector represents.’ This acquisition is expected to bolster Heidelberg’s efforts in reducing primary raw material usage, contributing to net-zero objectives.
The acquisition marks a pivotal moment for Heidelberg in its pursuit of sustainable and competitive practices within the construction industry.
