Complaint filed against Lehigh Cement's proposed acquisition of Keystone Cement
The Federal Trade Commission is seeking to block Lehigh Cement Co LLC’s US$151m acquisition of rival Pennsylvania-based cement producer Keystone Cement Co (Element Group), alleging the deal would harm regional competition in the market.
Lehigh (HeidelbergCement group) owns multiple competing factories that sell cement in Keystone markets, including two cement plants located within 40 miles of Keystone’s plant in Bath, Pennsylvania.
The Commission filed an administrative complaint and authorised a suit in federal court, to enjoin the transaction pending the outcome of the administrative proceedings.
The FTC alleges that the acquisition would harm competition in the market for grey Portland cement in eastern Pennsylvania and western New Jersey, reducing the number of significant competitors from four to three.
No new plants or terminals have been constructed in eastern Pennsylvania or western New Jersey in over 30 years.
