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THE ROAD TO SETTLEMENT
ASPHALT & ROAD CONTRACTOR SETTLES ANTITRUST SUIT
The Wasatch Front's largest asphalt and road construction company will have to clear a few roadblocks before it can buy the region's fourth largest company. Oldcastle Materials, the parent company of Jack B. Parsons Construction and Staker Paving, has agreed to sell construction equipment and two asphalt plants in order to purchase U.S. Aggregates, known mostly in Northern Utah as Valley Asphalt.
The agreement will settle an antitrust lawsuit filed May 29 by the Utah Attorney General's Office in Federal Court in Salt Lake City. The suit aims to prevent Oldcastle Materials from acquiring monopoly power in the asphalt and road construction business in the area. Bottom line: Oldcastle will control 45% instead of 53% of the asphalt production in the area.
"This agreement paves the way for fair competition," said Assistant Attorney General Wayne Klein. "We have worked hard to make sure these businesses can thrive and consumers are still protected." Klein says taxpayers may benefit most from the settlement since the state is the biggest purchaser of asphalt.
In anticipation of the lawsuit, Oldcastle has agreed to sell the construction equipment and two U.S. Aggregates asphalt plants in Lehi and Spanish Fork. The company will be permitted to keep another plant and the aggregate quarries near Santaquin.
The Attorney General's Office and Oldcastle also agreed to the following terms:
- The assets will be sold in six months or a trustee will be appointed.
- The Attorney General must approve the buyers of the plants and equipment
- Advance notice must be given of any future acquisitions
- Oldcastle cannot undermine new competitors and permit inspections to ensure compliance to the court order
A judge has set a hearing on June 18 to consider final approval of the agreement.