Pennsylvania Attorney General Dave Sunday says a proposed settlement would require major divestitures before Colas Inc. can complete its planned acquisition of Suit-Kote Corporation, two large asphalt companies that operate across Pennsylvania and New York.
The Pennsylvania Office of Attorney General filed a federal complaint and proposed settlement after concluding the transaction, as originally structured, could reduce competition for asphalt emulsions and pavement-preservation services. Those products and services are purchased by PennDOT, municipalities and commercial customers for road maintenance.
Under the proposed agreement, the companies would divest four facilities to a qualified buyer. The locations include a Colas facility in Bloomsburg and Suit-Kote facilities in Belmont, Buffalo and Jamestown, New York.
The agreement also calls for up to $6.5 million in investment at the Bloomsburg facility. That work would include an emulsion mill, asphalt-emulsion storage and pavement-preservation equipment. Another $3.5 million would be invested at the Belmont facility for pavement-preservation equipment.
The attorney general’s office says the divestitures and investments are designed to preserve competition and reduce the risk of higher prices, lower quality or less favorable terms for public agencies and private buyers. Asphalt emulsions are mixtures used in pavement-preservation work such as chip sealing and microsurfacing.
The settlement still requires approval from a federal court. New York Attorney General Letitia James announced a related action addressing the same transaction.
