Brickworks acquisition given green light

Company News

The consumer watchdog has given the green light to Brickworks Limited (ASX:BKW) acquisition of Boral Limited’s (ASX:BLD) NSW concrete masonry business.

The Australian Competition and Consumer Commission (ACCC) says the acquisition is unlikely to lessen competition in the greater Sydney market.

The ACCC’s enquiries found that while the merged entity will enjoy the largest share of the regional market, it will continue to face competitive restraint.

A number of competing concrete masonry producers with excess capacity will provide suitable competition, according to the competition regulator.

The acquisition will take place through Brickworks subsidiary Austral Masonry Holdings.

Brickworks generated a net profit of $43.3 million in its 2012 financial year.

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