By Kristy Dorsey

Building materials group Breedon has confirmed the identity of the three Scottish sites set to be sold to clear the way for its £178 million acquisition of Cemex operations in the UK.

Tillicoultry Quarriers will acquire a total of 14 sites across the UK for £12.2m in cash, including 10 ready-mixed concrete plants in England, plus an asphalt plant and an associated aggregates depot. In Scotland, two quarries and cement terminal employing approximately a dozen people will be divested by Breedon.

The move comes after the Competition and Markets Authority (CMA) said that Breedon’s acquisition of Cemex in the UK – which covers about 100 operations employing roughly 650 people – could lead to higher prices and lower quality in 15 local markets. One of the local markets highlighted was in the east of Scotland.

The deal was first announced in January and was completed on July 31, though all Cemex operations have been in a separate holding company while the CMA investigation takes place. Subject to the regulator’s approval, the disposal to Tillicoultry is expected to be completed before the end of the year.

Following completion of that disposal, Breedon said it will integrate the remaining former Cemex assets into its existing operations, and will “implement its plans for performance improvement to deliver value from the acquisition.”

“We are very pleased with the outcome of this process and believe it is in the interests of all shareholders,” Breedon chief executive Pat Ward said.

“It allows Breedon to realise fair value for the assets disposed of which, together with the people employed in them, will be in good hands under new ownership of Tillicoultry Quarriers.”

The Scottish sites being divested include sand and gravel quarries in Collessie, Fife, and Loanleven in Perth, along with a cement terminal in Dundee.

In Scotland, Breedon already had two cement plants and multiple quarries, asphalt and ready-mix concrete plants.

The former Cemex sites that will become part of Breedon’s operations include ready-mix concrete sites in Stirling, Grangemouth, Glasgow and Cumbernauld, a quarry in Edinburgh and asphalt plants in Edinburgh, Renfrewshire and the Borders.