Case Description
In March 2002,Oldcastle, Inc. and U.S. Aggregates executed a purchase agreement, through the bankruptcy court, which resulted in Oldcastle acquiring all the assets of U.S. Aggregates. Oldcastle and U.S. Aggregates were competitors in the hot-asphalt market in the market area around Salt Lake known as the “Wasatch Front.” This area is bounded by two sets of mountains and is a discrete market area with high entry barriers. Oldcastle’s acquisition substantially reduced competition by combining the first and fourth largest firms on the Wasatch Front. The state concluded that if Oldcastle and U.S. Aggregates were allowed to combine their operations, the resulting entity would control over 62% of all asphalt sales in the Wasatch Front and the post-merger HHI would increase by 1281. Such an entity would be able to dominate the hot-asphalt market, and would have market power to increase the price of hot asphalt in the Wasatch Front area. A consent decree was entered, under which Oldcastle agreed to divest two asphalt plants and construction equipment acquired in the U.S. Aggregate sale within 180 days of the Final Jugment. As part of the Judgment, Oldcastle was also ordered not to make any acquisition directly or indirectly of any company or assets of any competitor in the Wasatch Front area unless advance notice was given to the Attorney General.
