CMA begins phase 1 probe into Hanson’s acquisition of Mick George

 Building materials company Hanson UK announced the plans in December 2022, subject to competition authority approval (see letsrecycle.com story).

While Veolia acquired Mick George Recycling Ltd in 2019, the rest of the company still operates in the construction waste sector, with four C&D material recycling facilities, eight waste transfer stations, 11 aggregates quarries and 10 ready-mixed concrete plants in its portfolio.

Last month, the CMA invited comments regarding the deal, explaining that  it “is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

Notice

In a notice published by the CMA today, but dated 19 September, the body formally begun the phase 1 investigation, saying:  “The Competition and Markets Authority hereby gives notice… that the merger notice provided by Hanson and Mick George Limited in relation to the anticipated acquisition by Hanson meets the requirements of section 96(2) of the Act.

“The deadline for the CMA to announce its decision whether to refer the merger for a Phase 2 investigation is therefore 14 November 2023.”

Competition

Merger inquiries take place where there is concern that two merging parties could gain too much market power, therefore resulting in a “substantial lessening of competition”.

The involvement of the competitions body is not a surprise given the size of the two companies in the UK, with the parties noting this in their announcement last year.

Consolidation

With much consolidation in the industry, the attention of companies looking to enter the market or expand their presence has switched to ‘regional powerhouse’ waste firms.

This also gives companies access to waste, which is becoming more valuable for energy.

Mick George’s sale comes after similar sized companies such as Britaniacrest Recycling, B&M Waste, O’Donnovan, and McGrath were all acquired last year alone.

These sales come on the back of Veolia’s attempted acquisition of Suez in the UK, Viridor’s sale to KKR, and Biffa takeover by Energy Capital Partners.

Hanson

Hanson UK is based in Maidenhead and is a subsidiary of the German company HeidelbergCement.

Hanson said in December that the Mick George acquisition will “significantly strengthen our circular materials offering while complementing our existing aggregates and ready-mixed concrete businesses.”