Colas Inc. ordered to sell asphalt plants to prevent monopoly

New York and Pennsylvania Attorneys General have reached a settlement requiring Colas Inc. to sell several asphalt facilities to maintain market competition. The order follows an antitrust investigation into a proposed merger between Colas Inc. and Suit-Kote Corporation.

To prevent a monopoly in the road repair industry, Colas must sell one facility in Pennsylvania and three former Suit-Kote facilities in New York, specifically located in Belmont, Buffalo, and Jamestown. The investigation found that in several Western and Central New York counties, including Chautauqua County, Colas and Suit-Kote were often the only two regular bidders for turnkey road repair services.

New York Attorney General Letitia James stated that protecting competition ensures tax dollars are spent fairly and that asphalt companies continue to provide high-quality services to towns and counties. Because many municipal highway departments lack specialized equipment, they rely heavily on turnkey providers like Colas and Suit-Kote to both supply and apply asphalt.