Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Mining firm Anglo American has reached an agreement in principle to sell its 50% interest in building materials manufacturer Lafarge Tarmac to Lafarge for a minimum value of £885 million.
The deal is connected to the proposed merger of France’s Lafarge SA and Holcim of Switzerland, which is expected to be completed in the first half of 2015. Once Lafarge owns all , it intends to sell it, in order to allow the proposed merger to go through.
A company statement said: “An announcement is being made at this stage as Lafarge intends to offer a full divestment of the JV (Lafarge Tarmac) to the European Commission as a remedy for the UK market in respect of the proposed merger of Lafarge and Holcim Ltd (“Holcim”).
“Under the terms of the in principlof Lafarge Tarmace agreement, which is not legally binding, the sale will be subject to a number of conditions including the completion of the Lafarge /Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy and approval of this sale transaction by the necessary regulators.
“Lafarge and Holcim have announced that they expect the merger to be completed in the first half of 2015. Anglo American and Lafarge will work towards finalising the terms of a definitive agreement in Q3 2014.”
“In the event that a subsequent divestment of Lafarge Tarmac is agreed within 18 months of this sale being completed, then Anglo American will participate in a minority proportion of the upside beyond a small premium to the terms of this proposed transaction.”
