Justice Department moves to block CRH asphalt merger over competition concerns
The Justice Department’s Antitrust Division filed a motion to intervene in CRH’s purchase of Standard Construction, arguing the deal could reduce competition and raise asphalt prices for the Tennessee Department of Transportation, and a settlement requires divesting two plants.
The Justice Department’s Antitrust Division has moved to intervene in the proposed merger of CRH’s subsidiary APAC-Tennessee with Standard Construction, warning that the consolidation could diminish competition and increase asphalt prices for the Tennessee Department of Transportation. The transaction would unite two of the three largest asphalt producers in western Tennessee. As part of a settlement with the department and the Tennessee attorney general, APAC-Tennessee agreed to sell two hot-mix asphalt plants to Dunn Construction of Birmingham, Alabama.
A draft report to the Tennessee Advisory Commission on Intergovernmental Relations highlighted the DOT’s growing cost pressures, estimating $1.6 billion needed for upkeep and $3.6 billion for improvements. The department’s budget relies heavily on federal fuel taxes and state gasoline and diesel taxes, which have not risen since 2020. Deputy Assistant Attorney General Charles Beller said state antitrust enforcement can curb localized market harms, citing similar recent settlements in California and Texas. The Center Square was unable to obtain comment from CRH before publication.
Why it matters
The case could affect asphalt prices and infrastructure costs for Tennessee’s road network.
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