DOJ Refers Asphalt M&A Cases to State Authorities
Acquirers must prepare for state-level divestiture demands when merging regional asphalt and infrastructure businesses.
Updated on Oct. 29, 2026 in Business Strategy
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The U.S. Justice Department has referred two major asphalt industry mergers to state attorneys general to address local competition concerns. These referrals, finalized in October 2026, required the companies to divest specific regional facilities to settle antitrust investigations.
Why it matters
This shift indicates a move toward decentralized antitrust enforcement where the DOJ leverages state-level authorities to address regional market consolidation. For operators in heavy infrastructure and materials, this increases the importance of monitoring state-level regulatory filings during M&A cycles.
The enforcement actions resulted in the divestiture of four asphalt facilities following the DOJ's review of the Colas and Suit-Kote acquisition. Separately, the CRH acquisition of Arcosa remains valued at approximately $8.5 billion.
The players
Justice Department Antitrust Division
The federal agency tasked with enforcing competition laws and investigating market-consolidating acquisitions.
Colas Inc.
A major multinational construction and infrastructure company focused on road building and civil engineering.
Suit-Kote Corporation
A regional asphalt and paving materials supplier active in the Northeast United States.
CRH plc.
A global leader in the production and supply of building materials and infrastructure solutions.
Arcosa Inc.
A diversified provider of infrastructure-related products and solutions for the construction and energy markets.
The details
The DOJ's Antitrust Division utilized state-level legal filings to resolve competition concerns, rather than pursuing federal-level litigation. By partnering with state attorneys general, the agency addressed specific geographic monopolies created by the mergers. For the Colas and Suit-Kote deal, this resulted in the required divestiture of four facilities located in New York and Pennsylvania. A similar strategy was applied to the CRH acquisition of Arcosa in New Jersey, ensuring market competition in critical asphalt supply chains.
Timeline
August 2025: Bouygues announces intention to acquire Suit-Kote.
October 2025: Justice Department issues Second Requests to Colas and Suit-Kote.
June 2026: CRH announces intention to acquire Arcosa.
October 13, 2026: Colas and Suit-Kote settlement filings made in New York and Pennsylvania.
October 20, 2026: CRH and Arcosa settlement filing made in New Jersey.
Market Landscape
The Justice Department's referrals align with the enforcement scope of the Sherman Antitrust Act, which governs horizontal competition in regional markets. This strategy of delegating regional enforcement to state attorneys general updates how federal agencies handle local market consolidation.
Operators in the infrastructure and materials sector should anticipate more active oversight from state attorneys general during acquisition due diligence. Ensure legal counsel monitors state-level antitrust filings as federal agencies increasingly offload local competition issues to regional authorities.
The takeaway
The DOJ's pivot to state-led antitrust settlements suggests that regional asphalt market concentration will face ongoing scrutiny regardless of federal-level deal approval. Operators should integrate state attorney general inquiries into their M&A risk assessments to prevent unexpected facility divestitures.
Further reading
Learn more about the evolving regulatory environment in our Business Strategy section.
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Should federal regulators more aggressively block regional mergers that could limit local market competition?
