A conditional agreement was reached on January 8 for Breedon to pay £155 million in cash together with the assumption of £23m of lease liabilities.

The Competition and Markets Authority (CMA) has instructed that these assets should be held separate from Breedon until it has completed an investigation. Accordingly, the assets will be operated as Pinnacle Construction Materials, a newly-created ring-fenced business led by an independent management team and operating from its own offices.

Pinnacle offers a comprehensive range of heavy building materials, including aggregates, asphalt, ready-mixed concrete, concrete products and cement, together with contracting services, from approximately 100 locations in England, Wales and Scotland.

This acquisition brings with it a portfolio of high-quality, well-located operations with a strong team of some 650 employees and a further 170 million tonnes of mineral reserves and resources.

Breedon said it will strengthen its regional footprint in the UK and provide a platform for future expansion.

The CMA is presently undertaking a Phase 1 investigation, in respect of which the CMA are expected to announce their initial conclusions on or before August 26.

Following the conclusion of the CMA’s investigation, which could still take several months, and subject to the outcome of that investigation, the assets are expected to be incorporated into Breedon’s UK business.