The Competition Commission is directing Lafarge Tarmac to sell a cement plant to a new entrant to improve competition in the market.
However, Lafarge Tarmac said that the plan was flawed and customers would lose out.
Lafarge Tarmac CEO Cyrille Ragoucy said:聽鈥淲e are disappointed that the Competition Commission has asked Lafarge Tarmac聽to divest another cement plant only a year after it allowed the creation of the JV. This is not reasonable or proportionate and we have not been given a fair opportunity to defend our position.
鈥淭he Commission has based its remedies on a partial and historic picture of聽the market. Its analysis of industry profitability, which is central to its聽conclusion of Adverse Effect on Competition, is flawed, grossly overestimating the returns made. It has also failed to take into account the聽new business environment that has been established by our divestments 鈥� only 12 months ago 鈥� to create a new competitor, and the entry of聽new importers into the market.
鈥淩egrettably, the biggest loser in this聽process would be the customer.聽We are focused on reviewing our options based on today鈥檚 CC announcement and making a decision that is in the best interests of our employees, customers and shareholders.鈥�
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