The ACCC has given the all-clear to four Concrete Institute of Australia members to buy BGC Cementitious despite preliminary competition concerns.
The competition regulator conducted a 100-day investigation into the implications of Cement Australia, Holcim (Australia), Heidelberg Materials Australia, and Adbri acquiring the Western Australian division of BGC Group, before making its decision.
The Australian Competition & Consumer Commission (ACCC) said it focused on whether the loss of BGC as a competitor in the supply of ready mix concrete (RMX) in the Greater Perth region, would impact competition. In particular, the ACCC considered if Holcim and/or Heidelberg (HMA) would have market power in any local markets, enabling them to increase price or reduce the level of service provided.
The ACCC found that the Amended Proposed Acquisition from May 2025 that brought Adbri in on the deal, would increase each of Holcim and HMA’s respective market shares across Greater Perth, and in specific local areas. However, it noted that the remaining RMX competitors, including Boral, WA Premix and Adbri, would constrain Holcim and HMA following the acquisition. As Adbri does not currently hold any assets or operate in markets for the supply of RMX in WA, the ACCC found its acquisition of the RMX sites was unlikely to raise competition concerns in supply.
As for cement specifically, the competition watchdog stated, “The investigation also considered the competitive implications of the vertical integration of Adbri into supply of RMX and the entry of Cement Australia into cement production in Western Australia. Given this would effectively mean both cement suppliers in Greater Perth would be vertically integrated, to some extent. the ACCC considered the ability and incentive of Adbri and Cement Australia to individually or together take steps to foreclose downstream RMX rivals’ access to cement.
“Post-acquisition the ACCC considers that Cement Australia and Adbri would have significant excess capacity in the production of cement in Western Australia. The ACCC also looked closely at the margins that the merger parties earn at various levels of the supply chain, and the profit incentives that would likely drive their decisions post-acquisition. The ACCC found that, in light of these factors, Cement Australia and Adbri would likely compete to supply cement to RMX rivals post-acquisition.”
The ACCC concluded that the acquisition proposal that included Adbri was unlikely to substantially lessen competition in any relevant market in Australia.
About the author
Desi Corbett
Desi is the Editor of Concrete in Australia, at the helm since December 2013, and our weekly news writer since 2016. Focused on concrete and construction for more than 11 years, her expertise in this field forms part of a journalism career spanning three decades. To get in touch please email desi@corbettcomms.com