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Cement cartel UK

 

 

"The first thing for any regulator to do is go out and find the cement cartel. [...] The only countries in which I had been unable to find the cement cartel is where there is a national state-owned monopoly for cement."

Prof. Richard Whish, Kings College London

 

Upon the initiative of the British Aggregates Association (BAA), CDC is currently analysing the British cement market. For the first time, CDC will made use of an internet-based version of the "tradebaCCC"-technique. Supply relationships between the British cement customers and their suppliers will be gathered and analysed. However, neither the British cartel authorities nor the EU-Commission have investigated the British cement market or have initiated monetary fine proceedings, as far as publicly known. Notwithstanding, the British cement market is for quite some time under suspicion of having established a cartel, in particular because the cement prices in England and Scotland are drastically higher than in continental Europe.

According to first estimates, cement prices in England are about 40.00 to 50.00 € per ton higher than in Germany. The different price levels have already existed during a period of significant overcapacities in continental Europe.

The British cement industry has consolidated over the past 20 years. Today, there are basically four big cement producers:

·         Buxton Lime Industries (Anglo American),

·         Castle Cement (HeidelbergCement),

·         Cemex UK Cement and

·         Lafarge Cement.

Furthermore, through the takeover of Aggregates Industries in 2006

·         Holcim

another international player in the cement industry has entered the British market. Each of these companies is operating internationally. Some of them have already been found guilty of having infringed antitrust law or have at least been subject to suspicions (for example in Europe alone in Germany, Ireland, Poland, France, Ukraine, Romania and Hungary). The cement sector is in the whole world considered to be particularly susceptible to anticompetitive agreements.

 

Further information:

Contract Journal of 18/04/2007

Contract Journal of 30/03/2007

British Aggregates Association, press release of 19/03/2007

 

 

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