The Office of Fair Trading (OFT) has accepted undertakings offered by Aggregate Industries Limited (AI) to address competition concerns arising from its acquisition of Atlantic Aggregates Limited (Atlantic). The OFT investigated the merger to ensure the rules relating to unfair competition were not being breached. The OFT has a duty to make a reference to the Competition Commission if the OFT believes that it is or may be the case that a relevant merger situation has been created and the creation of that situation has resulted or may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services. Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million, or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced

In this case, the OFT found that the possible merger initially created the probability of a substantial lessening of competition in the supply of aggregates in Cornwall as the company would account for the majority of output. In response AI agreed to sell Atlantic's business in Gunheath, Cornwall to an upfront buyer approved by the OFT, and following consultation, the OFT has agreed Brookland Sand and Aggregates Limited as a purchaser for the business. The sale fully removes the overlapping activities of AI and Atlantic in Cornwall, and resolves competition concerns originally raised by the OFT.