2023-04-28 10:22:03 ET
Martin Marietta Material's ( NYSE: MLM ) planned sale of a cement plan in California to CalPortland Company for $350 million in cash was cancelled as the Federal Trade Commission alleged the deal would reduce competition in Southern California.
"The transaction would have reduced the number of cement suppliers in Southern California from five to four, further concentrating an already concentrated market, and was presumptively illegal," the FTC said in a statement.
The termination comes after Martin Marietta ( MLM ) announced its deal to s ell the cement plant to CalPortland, which is owned by Japan's Taiheiyo Cement Corporation, in August. The deal was originally expected to close in the fist half of the year.
The deal cancellation also comes as the FTC removed a listing of a closed door meeting that was scheduled to be held on Monday.
Investors often speculate when the meeting notices are given that the FTC may be voting on ongoing deal that's being reviewed. While sometimes these meetings are about public companies, often times they are on private firms.
Martin Marietta ( MLM ) rose 1.2% in trading on Friday.
Martin Marietta ( MLM ) is set to report Q1 results on Thursday.
For further details see:
Martin Marietta $350M sale of California cement plan canceled amid FTC review