Date of reference: 18 January 2012
The OFT carried out a market study into the markets for aggregates, cement and ready-mix concrete in the UK, and announced its provisional decision to refer these markets to the Competition Commission in August 2011. Following the provisional decision, the OFT held a six-week public consultation.
The OFT confirmed its decision to make a market investigation reference on the 18 January 2012.
The OFT has referred the markets for aggregates, cement and ready-mix concrete in Great Britain, to the Competition Commission for investigation, under section 131 of the Enterprise Act 2002. This is because the OFT has concerns that the industry displays a number of features which may adversely affect competition. These include barriers to entry, vertical integration, homogeneous products, market transparency and multi-market contacts which have the potential to reduce competition in settings with high levels of concentration.
Having carefully considered all the comments and evidence received during the public consultation, the OFT considers that Great Britain and Northern Ireland are likely to be distinct geographic markets and that the features identified are not present to the same degree in Northern Ireland. Therefore the OFT has decided not to include Northern Ireland in the scope of the reference. However, we have not come to a view as to whether Northern Ireland is a competitive market and may decide to look at this geographic market in more detail in the future.
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