Following the parties’ decision to abandon their proposed merger, Acting Bureau of Competition Director Maribeth Petrizzi made this statement:
“This is great news for cement customers in eastern Pennsylvania and western New Jersey. The FTC voted 4-0 to challenge this transaction because it would have reduced the number of significant competitors in the market for gray portland cement in this region from four to three. I’m grateful to the Bureau’s staff for their tireless efforts throughout this investigation, but also to our partners in the Pennsylvania Attorney General’s Office, who worked closely with us to ensure that cement customers in this region will continue to benefit from competition between Lehigh and Keystone.”
On May 20, 2021, the Commission announced that it voted to file an administrative complaint and authorize staff to seek a temporary restraining order and preliminary injunction in federal court to stop Lehigh Cement Company LLC’s proposed $151 million acquisition of Keystone Cement Company.
The FTC alleged that the proposed acquisition would harm competition in the market for gray portland cement in eastern Pennsylvania and western New Jersey, reducing the number of significant competitors from four to three.