The Australian Competition and Consumer Commission (ACCC) has decided not to oppose the amended acquisition of BGC Cementitious (BGC) by Cement Australia, Holcim, Heidelberg Materials Australia (HMA), and Adbri Pty Ltd.
BGC and Cement Australia are both major suppliers of cement, aggregates, asphalt, and ready-mix concrete in greater Perth. The ACCC initially raised concerns about the original proposal, citing competitive overlaps in ready-mix and quarry operations in Western Australia. In response, the merger parties restructured the deal to address these issues.
Under the revised plan, BGC’s cement assets and selected ready-mix plants will transfer to Cement Australia, Holcim, and HMA. Meanwhile, Adbri will acquire the bulk of BGC’s ready-mix operations along with aggregates, asphalt, transport, and its materials technology centre.
ACCC Commissioner Dr Philip Williams explained that while some industry participants expressed concerns, the regulator’s review found that Cement Australia and Adbri would continue to compete vigorously in supplying cement. Both companies also have significant excess capacity, ensuring competitive pressure remains in the market.
The ACCC’s detailed analysis of supply chains and pricing concluded that rival RMX suppliers would continue to constrain Holcim and HMA, and the acquisition would not substantially lessen competition in Western Australia.
