ACCC approves Heidelberg's acquisition of Maas Group business

• The Australian Competition and Consumer Commission approved Heidelberg Materials Australia's acquisition of Maas Group construction materials business, subject to the divestment of three concrete plants and a quarry.
• The announcement marks the regulator's first Phase 1 conditional approval since a formal merger control regime commenced.
• The regulatory conditions are intended to preserve independent competition in affected regional markets across Queensland and New South Wales.

The Australian Competition and Consumer Commission approved Heidelberg Materials Australia’s acquisition of Maas Group (ASX:MGH) construction materials business, subject to conditions that require the divestment of three concrete plants and a quarry.

The regulatory review examined whether the transaction would reduce competition in locations where the operations of both companies overlap.

“To address our concerns, we made the approval subject to conditions that Heidelberg divest three ready-mix concrete plants in Queensland and New South Wales, and a quarry in Queensland,” said ACCC Deputy Chair Mick Keogh.

The required divestitures include ready-mix concrete plants located in Blackwater, North Wollongong, and Bass Point, alongside the Yalkara quarry situated in Biloela.

Following the announcement, the Maas Group Holdings share price was unchanged at $4.91.

The transaction represents the first Phase 1 decision with conditions issued by the regulator since the new formal merger control regime commenced on Jan. 1.

Regulators previously assessed that the acquisition would otherwise combine the only two local concrete suppliers in Blackwater and reduce effective market alternatives in the Illawarra and Biloela regions.