Following the Federal Trade Commission’s filing of a lawsuit to block the transaction, CRH plc, the parent company of Oldcastle Architectural, Inc., announced on January 14, 2009, that it will not proceed with its proposed $540 million acquisition of Pavestone Company, LP. The announcement states that CRH plc has withdrawn its premerger notification filing for the proposed acquisition. The FTC’s complaint charges that the acquisition would violate the federal antitrust laws by greatly reducing competition for drycast concrete hardscape products sold to national home centers, such as The Home Depot, Lowe’s, and Wal-Mart, in nearly 300 metropolitan areas across the U.S. The FTC also alleges that the acquisition would have similar anticompetitive effects in the manufacture and sale of drycast concrete pavers and segmented retaining wall blocks to commercial customers, including contractors, dealers, and distributors, in the areas of Dallas, Houston, and San Antonio, Texas.
“We were ready to present at trial compelling evidence that the combination of Oldcastle and Pavestone would have led to higher prices and other harmful effects in the sale and manufacture of drycast concrete hardscapes used in walkways, patios, and garden walls,” said David P. Wales, Acting Director of the FTC’s Bureau of Competition. “The parties’ decision to not proceed with the transaction in the face of our court challenge is a win for those do-it-yourselfers and other consumers who buy these products for their home improvement projects.”
The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Room 394, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read “Competition Counts” at http://www.ftc.gov/competitioncounts.
(FTC File No. 081-0148)