8 June 2007

No blocks for brick deal

The UK Competition Commission has cleared the proposed acquisition by Wienerberger, the third largest brick manufacturer in Britain, of Baggeridge, the forth largest manufacturer. The focus for the CC's investigation was the possibility of post-merger coordination between the four largest brick producers, who between them supply around 85% of all bricks. However, the CC found that it was unlikely that a basis for coordination could be found, and incentives to deviate from any coordinated outcome would anyway be significant. It cleared the merger unconditionally.RBB worked closely with the parties and their advisers - Wragge & Co and Tom Sharpe QC.

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