General Shale Brick Inc. is facing federal antitrust charges after it was revealed that the company’s acquisition of Meridian Brick LLC would have led to a significant reduction in competition for residential brick in the southern and midwestern United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction, which would have seen General Shale acquire Meridian, one of the largest suppliers of residential brick in the United States.
Under the terms of the proposed settlement, General Shale and Meridian must divest three manufacturing facilities, 14 distribution yards and showrooms, and six mines for extracting input materials used in the manufacture of residential brick to RemSom LLC or an alternative acquirer approved by the United States. The settlement would resolve the competitive harm alleged in the lawsuit.
“Residential brick is an essential building block in American home construction,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “As originally proposed, the transaction would have led to higher priced and lower quality residential brick, making it more expensive for millions of Americans to build and purchase homes. The settlement preserves competition for the manufacture and sale of residential brick to the benefit of American homebuilders and homebuyers.”
General Shale is headquartered in Johnson City, Tennessee, and is a North American subsidiary of Wienerberger AG. General Shale is a leading U.S. producer of construction materials, such as brick, stone and concrete block products. Wienerberger AG’s North American business generated approximately $370 million in revenues in 2020, 78% of which came from brick sales.
Meridian was formed as a joint venture in 2016 by its parent companies Boral Limited and LSF9 Stardust Super Holdings L.P. Meridian, headquartered in Alpharetta, Georgia, is the largest residential brick manufacturer in the United States. Meridian generated over $400 million in revenues in the fiscal year 2020, which was primarily derived from brick sales.
The proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Jay Owen, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700, Washington, D.C. 20530.
The claims resolved by the settlement are allegations only and there has been no determination of liability. The U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
Related Federal Cases
Key Facts
- State: Federal
- Category: Antitrust|Corporate Crime
- Source: DOJ Press Release â†â€â€
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