Anglo, Lafarge complete 50:50 JV
Anglo American plc (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 trading today.
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 GBP60 million through improving operational logistical and purchasing efficiencies and the introduction of value-added products across a wider geographic area.
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‚ Chairman & 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 growing economy.”
As announced on 23 November 2012‚ the Lafarge Tarmac leadership team includes Jamie Pike as Non-Executive Chairman‚ Cyrille Ragoucy as CEO and Guy Young as CFO. - I-Net Bridge