Mining giant Anglo American and French cement group Lafarge are to sell a portfolio of UK construction material operations to steel tycoon Lakshmi Mittal, the companies announced on Friday.
The assets comprise: a Derbyshire cement plant; 172 ready mix concrete plants; five aggregates quarries; two asphalt plants; one marine aggregates wharf; one rail-linked aggregates depot; and Tarmac's 50% stake in Midland Quarry Products.
These are being sold for £272m in cash to Mittal Investments, run by the family of Lakshmi Mittal, who is the frontman and shareholder of steel giant ArcelorMittal.
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The companies said that the sale is conditional upon Competition Commission approval of setting up a 50:50 joint venture between Lafarge and Anglo's heavy building materials producing unit Tarmac, which will combine their cement, aggregates, concrete and asphalt businesses in the UK.
The firms said: "Completion of the JV is expected in early 2013 and once established, it will create a new, leading UK construction materials company, with a portfolio of high quality assets, drawing on the complementary geographical distribution of operations, the skills of two experienced management teams, and a portfolio of well-recognised, innovative brands."
The deal with Mittal Investments also includes a consideration of up to £30m though this is subject to the performance of the assets over the next three years. Meanwhile, around £13m relating to working capital of the divested assets not transferring over will be disbursed back to the Lafarge-Tarmac joint venture.
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