Anglo and Lafarge to sell UK construction assets to ‪Lakshmi Mittal

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.

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.

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.

Recommended

Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares in the week ending 5 August, providing an insight into how investors are thinking and where opportunities may l…
9 Aug 2022
Where to find inflation-resistant stocks
Investment strategy

Where to find inflation-resistant stocks

Terry Smith’s latest update contains some valuable pointers for investors looking to protect against inflation.
8 Aug 2022
A low-risk way to beat inflation
Share tips

A low-risk way to beat inflation

Demand for care-home places is strong and the sector should be able to raise prices ahead of costs, says Max King.
8 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022