Anglo American and Lafarge announce completion of joint venture

Anglo American and Lafarge have completed their joint venture for UK construction services after getting the green light from the Competition Commission.

The venture, known as Lafarge Tarmac, begins trading Monday. It will combine their cement, aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services, and waste services businesses in the UK.

The Competition Commission gave the all clear based on Monday's completed sale of a portfolio of Tarmac and Lafarge construction materials operations in the UK.

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 the transaction is pending as as result.

Lafarge Tarmac is expected to generate synergies of £60m by improving logistics and introducing products across a wider geographic area.

Cynthia Carroll, Chief Executive of FTSE 100 company 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."

Cyrille Ragoucy will step in Chief Executive Officer and Guy Young as Chief Financial Officer of Lafarge Tarmac.

Anglo American shares were down 0.07% to 2,000.50p while Lafarge dropped 0.57% to €48.56 at 17:08 Monday.

RD