Statement of the FTC's Bureau of Competition Regarding the Announcement that Oldcastle Architectural, Inc. Will Not Proceed with its Proposed Acquisition of the Pavestone Companies

Following the Federal Trade Commission’s filing of a lawsuit to block the transaction, CRH plc, the parent company of Oldcastle Architectural, Inc., announced on January 14, 2009, that it will not proceed with its proposed $540 million acquisition of Pavestone Company, LP. The announcement states that CRH plc has withdrawn its premerger notification filing for the proposed acquisition. The FTC’s complaint charges that the acquisition would violate the federal antitrust laws by greatly reducing competition for drycast concrete hardscape products sold to national home centers, such as The Home Depot, Lowe’s, and Wal-Mart, in nearly 300 metropolitan areas across the U.S. The FTC also alleges that the acquisition would have similar anticompetitive effects in the manufacture and sale of drycast concrete pavers and segmented retaining wall blocks to commercial customers, including contractors, dealers, and distributors, in the areas of Dallas, Houston, and San Antonio, Texas.

“We were ready to present at trial compelling evidence that the combination of Oldcastle and Pavestone would have led to higher prices and other harmful effects in the sale and manufacture of drycast concrete hardscapes used in walkways, patios, and garden walls,” said David P. Wales, Acting Director of the FTC’s Bureau of Competition. “The parties’ decision to not proceed with the transaction in the face of our court challenge is a win for those do-it-yourselfers and other consumers who buy these products for their home improvement projects.”

(FTC File No. 081-0148)