The joint venture will trade under the Capital Concrete name with three of Breedon’s existing ready-mixed concrete assets combined with those of Capital Concrete.

The enlarged business will provide both partners with a strong platform from which to grow in the London market.

Capital Concrete currently operates seven ready-mixed concrete plants in Bow, Croydon, Romford, Rainham, Wembley, Silvertown and Staines. 

Breedon will contribute its plants in Cricklewood, Feltham and Enfield, together with £3.1m in cash, in return for a 43%  interest in the joint venture. 

The balance will be owned by Brett (43%) and Capital Concrete’s management (14 %).  

Pat Ward, group chief executive of Breedon, said: “We have had a longstanding ambition to expand our footprint in the UK’s largest construction materials market. 

“This joint venture enables us to secure immediate critical mass in Greater London, in collaboration with an experienced local partner, with the potential to develop a business of significant scale in the capital over the next few years.

“We are very much looking forward to working with the outstanding management team in Capital Concrete and this also gives us a great opportunity to strengthen our relationship with Brett.”