Two of the leading construction companies based out of Netherlands, Heijmans and BAM, are exploring possibilities to form a joint venture for transferring their existing asphalt plants in the Netherlands to a new, joint asphalt company, informed sources familiar with the matter. Forming of this joint venture is subject to approval from the relevant competition authorities.

Both the companies have submitted a joint request to the European Commission, for having the deal investigated by the Netherlands Authority for Consumers and Markets (ACM), the sources mentioned. Currently, Heijmans and BAM are operating several asphalt plants in the country.

According to the sources, the knowledge and expertise of both the companies as well as their investments in innovation would be combined under the new asphalt company. Experts say that improving the sustainability in the asphalt chain is a vital objective for reducing CO2 emissions and for circularity, in addition to ensuring the reuse of semi-finished products and raw materials.

The joint venture will help to achieve greater efficiency and returns, by enhancing the use of available asphalt production capacity and improving the utilization rate of the plants. Apart from their own customers, the joint company would also focus on serving third parties in the asphalt market.

Sources added that the indicative yearly revenues of the joint asphalt company would be nearly €90 million. The work councils of Heijmans and BAM are apparently involved in the deal and the transaction request is under examination by the European Commission.

For the uninitiated, Heijmans is a listed company that provides services related to building and technology, property development, roads as well as civil engineering in the areas of living, working and connecting. The company executes projects for private companies and consumers along with public sector entities, being focused towards quality improvements and innovative solutions to add value for its clients.