The Justice Department Antitrust Division and Tennessee Attorney General jointly required CRH plc to divest two hot-mix asphalt plants as a condition of its acquisition of Standard Construction, the agencies announced Aug. 7.
The action is the first joint antitrust enforcement action between DOJ and Tennessee’s attorney general, described by both offices as a model for state-federal cooperation in merger enforcement.
The divestitures are required to preserve competition in the western Tennessee hot-mix asphalt market, which CRH would otherwise dominate, the Antitrust Division said. CRH is one of the world’s largest building materials companies, while Standard Construction is a regional highway and infrastructure contractor.
Hot-mix asphalt is a critical material for road construction and maintenance. Reduced competition in the market can lead to higher costs for highway projects funded by federal, state and local taxpayers.
The remedy requires CRH to find approved buyers for the two plants before the acquisition can close in the affected markets. The buyers must be capable of operating the plants as competitive asphalt producers.
The joint enforcement model could set a template for future state-federal antitrust cooperation, particularly in regional markets where mergers may not attract national attention but significantly affect local competition and prices.