ACCC give Austral greenlight for Boral masonry buy

The Australian Competition and Consumer Commission has announced it will not opposed the acquisition of Boral's NSW masonry business by Austral Masonry.

Austral, a subsidiary of Brickworks, makes the move as Boral sheds 700 jobs and restructures the company.

The ACCC stated that "this acquisition is unlikely to lead to a substantial lessening of competition in any relevant market".

"While the merged entity will have the largest share of the regional market for the manufacture and supply of concrete masonry products in the greater Sydney region after the acquisition, the ACCC's inquiries confirmed that it will continue to face competitive constraint. Importantly, there will remain a number of competing concrete masonry producers, several of which have excess capacity following declining sales of concrete masonry products in recent years".

ACCC chairman Rod Sims added that it "also conducted market inquiries and found that customers were generally not concerned about the proposed acquisition".

Early last year Boral sold off its Indonesian Construction Materials Business for US$135 million to Thailand's largest cement company Siam Cement Group.