Staff Reports
The Justice Department just put a thumb on the scale in a small but important Tennessee market. In a rare local move, the DOJ’s Antitrust Division recently filed a motion to intervene in the purchase of Standard Construction by CRH and its APAC-Tennessee unit. The result: a settlement that forces the seller to divest two hot-mix asphalt plants to Dunn Construction of Alabama to protect competition for asphalt supply in western Tennessee.
DOJ moves to stop higher asphalt prices
The Antitrust Division says the deal could leave just two big suppliers competing in parts of Tennessee and that could drive up prices for the Tennessee Department of Transportation. Deputy Assistant Attorney General Charles Beller warned that the acquisition might reduce competition and raise costs for the state. So the settlement requires APAC-Tennessee to sell two plants to Dunn Construction to keep a local competitor in the market.
Why this matters to Tennessee drivers and taxpayers
Asphalt isn’t glamorous, but it matters. The Tennessee Department of Transportation already faces tight budgets to maintain and improve roads. Higher asphalt prices mean fewer repairs and more potholes, or higher taxes and fees to pay for them. The DOJ’s move recognizes that sometimes even small local markets can have big effects on state budgets and highway projects.
Big mergers, small markets, same old playbook
Make no mistake: this is the familiar story of consolidation. CRH is a major international player scooping up smaller firms, and local markets get squeezed. The Justice Department and state enforcers are right to worry about rollups that leave communities with fewer choices and higher prices. Still, it’s worth a wry nod that Washington felt the need to micromanage two asphalt plants while bigger antitrust fights drag on elsewhere. Regulators should be consistent — not just headline hunters.
What to watch next
The required divestiture to Dunn Construction should keep prices in check in western Tennessee for now. But this episode is a reminder that mergers in basic industries — concrete, asphalt, power — can quietly hurt taxpayers. State officials need to stay alert, and voters should demand that both state and federal enforcers focus on protecting local competition, not just scoring political points. If they don’t, the next time you hit a pothole you might know who’s to blame.
