ACCC Approves Heidelberg’s Acquisition Of Maas Construction Materials Business Subject To Conditions

The Australian Competition and Consumer Commission has approved Heidelberg Materials Australia Holdings’ acquisition of Maas Group Holdings’ construction materials business, on the condition that Heidelberg divests three concrete plants and a quarry across Queensland and New South Wales.

The decision marks the ACCC’s first Phase 1 determination with conditions since the formal merger control regime commenced on 1 January 2026.

Both Heidelberg and Maas supply a range of construction materials including ready-mix concrete, coarse and fine aggregates, asphalt and recycled materials. The ACCC’s Phase 1 assessment examined whether combining the two businesses would reduce competition in locations where they overlap.

The regulator found that without conditions, the acquisition could substantially lessen competition in the supply of ready-mix concrete in the Illawarra region of New South Wales and Blackwater in Central Queensland, and in the supply of coarse aggregates in the Biloela region of Central Queensland.

Divestiture conditions imposed

ACCC Deputy Chair Mick Keogh explained the rationale behind the conditional approval.

“To address our concerns, we made the approval subject to conditions that Heidelberg divest three ready-mix concrete plants in Queensland and New South Wales, and a quarry in Queensland,” Keogh outlined.

“If there are clear actions a party can take to address competition concerns, under the new merger regime we can approve an acquisition in Phase 1 with conditions, thereby removing the need for an in-depth Phase 2 assessment.”

In response to the ACCC’s concerns, Heidelberg offered to divest ready-mix concrete plants in Blackwater, North Wollongong and Bass Point in the Illawarra, along with its Yalkara quarry in Biloela.

Competition concerns in three regions

The ACCC identified specific competition risks in three locations.

In Blackwater, Heidelberg and Maas are the only suppliers of ready-mix concrete. Without the divestiture condition, the acquisition would have combined the only two competitors supplying the local area, leaving customers with no alternative.

In the Illawarra, the regulator found the acquisition would combine major suppliers of ready-mix concrete and leave relatively few effective alternatives for customers. The ACCC considered that the remaining competitors were unlikely to provide sufficient competitive constraint to replace the competition lost through the merger.

In the Biloela region of Central Queensland, the acquisition would reduce the number of competing quarry operators and leave customers with fewer practical alternatives for the supply of coarse aggregates.

“The divestitures will preserve an independent competitor in the affected markets and maintain the competition that would otherwise be lost through the acquisition,” Keogh noted.

Other markets cleared

Beyond the three locations where conditions were imposed, the ACCC also assessed the impact of the acquisition across a range of other markets where the two businesses overlap.

The regulator also considered the likely effects on competition if, following the acquisition, Heidelberg was supplying or purchasing from its competitors in some of these locations.

The ACCC was not satisfied that the acquisition would be likely to substantially lessen competition in any markets other than those subject to the divestment conditions.

A landmark decision under the new regime

The conditional approval carries added significance as it is the first of its kind under Australia’s new merger control regime, which took effect on 1 January 2026.

Under the new regime, it is mandatory for businesses to notify the ACCC of any acquisition that meets the notification thresholds set by the Minister. Companies must wait for ACCC approval before they can proceed with a deal.

Once notified, the notification is listed on the ACCC’s Acquisitions Register and stakeholder consultation is invited. The ACCC is required to make a decision within 15 to 30 business days during its Phase 1 assessment, subject to any extensions, to either approve the acquisition or decide it should be subject to a more detailed Phase 2 review.

The timeline for Heidelberg’s Phase 1 assessment was extended by 15 days following a remedy offered by the parties.

The parties involved

Heidelberg Materials Australia Holdings supplies a range of construction materials, including ready-mix concrete, quarry products, asphalt and recycled construction materials. Its brands include Hymix, Alex Fraser Group, Elvin Group, Pioneer North Queensland, High Quality Concrete and Midway Concrete.

Maas Group Holdings is a diversified industrials group. Its construction materials business operates ready-mix concrete plants, hard rock and natural sand quarries, an asphalt business and a construction recycling centre. The company also provides materials testing and geotechnical services, machinery sales and earthmoving services.

Beyond construction materials, Maas operates a civil construction and hire business, a construction equipment manufacturing and retailing business, and a property development business. Its brands include Macquarie Geotech, Regional Group Australia, Cleary Bros, Dandy Premix and Amcor.

Heidelberg notified the ACCC that it proposed to acquire 100 per cent of the share capital of Regional Group Australia Pty Limited, Macquarie Geotechnical Pty Limited and Machinery Sales Pty Limited, which are wholly owned subsidiaries of Maas.

Further information, including the Phase 1 determination and a copy of conditions, is available on the ACCC’s Acquisitions Register.

Last Updated on July 31, 2026 by Nick Ross