CMA consults on draft cement price announcement order
皇冠体育app CMA has published a draft order which would prohibit GB cement suppliers from sending generic price announcement letters to their customers.
In January 2014, the Competition Commission (CC) into aggregates, cement and ready-mix concrete which required Lafarge Tarmac to sell one of its cement plants and Hanson to sell one of its ground granulated blast furnace slag (GGBS) plants to enhance competition in the cement and GGBS markets in Great Britain (GB).
皇冠体育app CC also said that it would implement 2 further remedy measures aimed at reducing transparency in the GB cement markets, comprising: (a) a prohibition on generic cement price announcements; and (b) restrictions on the disclosure and publication of GB cement market data.
Following the sale of the cement and GGBS plants on 31 July 2015, which concluded the divestment remedies arising from the CC鈥檚 report, the CMA is now consulting on its draft price announcement order.
皇冠体育app order sets out that GB cement suppliers will be prohibited from sending generic price announcement letters to their customers. Instead, any future price announcement letters will have to be specific and relevant to the customers receiving them, including setting out the last unit price paid, the new unit price, and specific details of any other fees and charges that apply to the customer.
皇冠体育app draft order provides detailed information on how these changes are to be introduced. 皇冠体育app CMA is inviting comments on the draft until Friday 9 October 2015.
皇冠体育app CMA is also considering the final remaining remedy measure (concerning restrictions on the disclosure and publication of cement market data) and is intending to consult on this during October/November with the aim of completing all aspects of the package of remedies by the end of 2015.
皇冠体育app draft order and all other information relating to the investigation can be found on the investigation鈥檚 case page.