Lafarge Tarmac begin trading
Completion of 50:50 joint venture deal creates UK’s leading construction materials company
LAFARGE and Anglo American have announced the completion of their 50:50 joint venture which combines their cement, aggregates, ready-mixed concrete, asphalt and asphalt surfacing, maintenance services, and waste services businesses in the UK.
The joint venture, which will be known as Lafarge Tarmac, began trading yesterday [Monday 7 January].
Completion of the joint venture followed 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 yesterday.
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 Ltd and, as a result, the completion of this transaction is pending.
The Lafarge Tarmac combination is expected to generate synergies of £60 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, commented: ‘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-recognized, innovative brands.’
Bruno Lafont, chairman and chief executive of Lafarge, said: ‘The closing of this transaction and the creation of a new British construction materials champion reinforce 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 chief executive officer and Guy Young as chief financial officer.
