Vulcan Materials, Florida Rock to divest |
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Wed, 14 Nov 2007 00:33
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WASHINGTON (AP) - The Justice Department on Tuesday required Vulcan Materials Co. and Florida Rock Industries Inc. to sell eight quarries as a condition for approving the companies' combination.Vulcan's acquisition of Florida Rock would likely result in higher prices for coarse aggregate in certain areas of the country the two companies serve, the department said. Coarse aggregate is a crushed stone used in concrete and asphalt.Birmingham-based Vulcan agreed in February to purchase Jacksonville, Fla.-based Florida Rock for $4.6 billion.The companies agreed to sell eight quarries: four operating quarries and one in development in the metropolitan Atlanta area; one in Columbus, Ga., one in Chattanooga, Tenn.; and one in Richmond, Va. The companies also agreed to sell a distribution yard in Chesapeake, Va.The companies are the only suppliers of coarse aggregate in the Atlanta and Hampton Roads, Va. regions, the department said, and are two of only three or four firms in Columbus and Chattanooga.Vulcan's shares dropped 22 cents to 83.60 in after-hours trading, after jumping $2.84 or 3.5 percent to close at $83.82 Tuesday. Florida Rock's shares fell 18 cents to $63.85 after-hours, after rising 81 cents to finish at $64.03.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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