Johannesburg - Anglo American [JSE:AGL] and Lafarge have
announced the completion of their 50:50 joint venture which creates a major
construction materials company in the UK.
The venture combines their cement‚ aggregates‚ ready-mix
concrete‚ asphalt and asphalt surfacing‚ maintenance services‚ and waste
services businesses in the UK.
The joint venture will be known as Lafarge Tarmac and begins
Completion of the Lafarge Tarmac joint venture follows final
clearance from the UK Competition Commission‚ predicated on the completed sale
of a portfolio of Tarmac and Lafarge construction materials operations in the
UK‚ which occurred today.
The agreed sale of Tarmac’s 50% ownership interest in
Midland Quarry Products is subject to a right of pre-emption in favour of
Hanson Quarry Products Europe Limited and‚ as a result‚ the completion of this
transaction is pending.
The Lafarge Tarmac combination is expected to generate
synergies of £60m through improving operational logistical and purchasing
efficiencies and the introduction of value-added products across a wider
Cynthia Carroll‚ chief executive of Anglo American‚ said:
"We have successfully united two high quality and complementary UK
businesses to create the leading UK construction materials company‚ with high
quality assets‚ two experienced management teams‚ and a portfolio of
well-recognised‚ innovative brands."
Bruno Lafont‚ chairperson & chief executive of Lafarge‚
said: "The closing of this transaction and the creation of a new British
construction materials champion reinforces Lafarge's ongoing commitment to the
UK market and its efforts to continuously improve its offering to customers‚ as
well as playing a full role in developing the infrastructure needed for a
As announced on 23 November 2012‚ the Lafarge Tarmac
leadership team includes Jamie Pike as non-executive chairperson‚ Cyrille
Ragoucy as CEO and Guy Young as CFO.
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