Wienerberger go-ahead for Baggeridge takeover

The takeover of materials firm Baggeridge Brick by Australian giant Wienerberger has been provisionally cleared by the Competition Commission (CC).

The CC ruled that the acquisition would be unlikely to lead to a substantial reduction in competition.

Christopher Clarke, inquiry chairman and a deputy chairman of the CC, said: "We concluded that the merged company would not be in a position to use its greater size to raise prices or reduce levels of service to its customers."

In a summary of its provisional findings, the CC also said it had found no evidence that UK brick producers had been price-fixing, nor did it expect them to have the opportunity to co-ordinate behaviour after the merger.

Responding to the commission's statement, Baggeridge said: "Baggeridge welcomes this morning's announcement [and] looks forward to publication of the final report."