The Justice Department’s Antitrust Division announced it will require building materials company CRH and its subsidiary APAC-Tennessee to divest two hot-mix asphalt production plants in western Tennessee as a condition of CRH’s acquisition of Standard Construction Company on August 7. The divestiture was required because DOJ determined that allowing CRH to absorb Standard Construction without shedding the plants would have substantially lessened competition for road construction contracts in the affected Tennessee markets, the department said.
The action was coordinated with the Tennessee Attorney General’s office in a joint federal-state enforcement model.
Hot-mix asphalt is the primary material used in road construction and maintenance. The competitive structure of local asphalt markets directly affects the cost of road-building projects, including those funded by federal infrastructure dollars.
For Tennessee taxpayers and drivers, protecting competition among asphalt producers means that state and local governments are more likely to receive competitive bids on road projects, potentially lowering costs and preserving infrastructure budgets. Concentrated markets tend to produce higher prices and fewer options for government purchasing agencies.
The road construction industry has seen significant consolidation in recent years, with large multinational companies acquiring regional producers. DOJ’s Antitrust Division has identified the sector as one requiring active enforcement to prevent local monopolies from forming.
CRH is one of the world’s largest building materials companies, with operations across multiple countries. The company’s U.S. operations include extensive asphalt production, aggregates mining, and paving contracting.
The divestiture requires CRH to sell the two affected plants to a buyer approved by DOJ, ensuring that the acquiring company has the capability and intention to operate them as competitive businesses.