Merger and acquisition (M&A) activity, particularly in the transportation materials and construction industry, is analyzed relatively infrequently. However, this activity can significantly affect project completion, market control, and pricing. In many cases, collaboration between firms with similar goals and corporate growth strategies in a healthy market motivate consolidations. Attempts to increase market share and efforts targeting wider market access may also be factors in M&A activity. Companies may engage in consolidation activity with other entities possessing complementary strengths and assets. They may also want to consolidate with other companies to increase the diversity of the product they can offer to the market.

M&A activity can potentially eliminate cost brackets, harm competition, create inequitable market control, or result in price increases. Any of these occurrences within the transportation materials and construction industry can alter bidding processes, consumer behaviors, and market attributes. The goal of this study was to investigate M&A activity and help transportation professionals become aware of how to identify consolidation activities and the influences these activities can have.

Recommended citation: Federal Highway Administration, Analysis of Material Source Mergers and Acquisitions on Project Delivery Quality and Costs
(Washington, DC: 2023) https://doi.org/10.21949/1521911