7th Jul 2014 06:39
LONDON (Alliance News) - Anglo American PLC Monday said it has entered a deal with Lafarge SA for Anglo American to sell to Lafarge its 50% holding in building-materials group Lafarge Tarmac Holdings Ltd for a minimum value of GBP885 million in cash.
The FTSE 100-listed mining giant said it has reached an agreement in principle to sell the stake in Lafarge Tarmac, which supplies aggregates and asphalt from more than 70 production plants and over 100 quarries in the UK, and develops sustainable readymix concrete, lime and powder, and cement products.
The company said the sale is being made as Lafarge SA plans to offer a full divestment of the joint venture to the European Commission as part of an ongoing proposed merger between Lafarge and Holcim Ltd. The two major cement makers are being forced to shed a large range of assets so that the merger meets European competition regulations.
On Monday, Anglo American said the terms of the deal are conditional on the completion of the merger and approval of the deal by regulators.
The merger is expected to be completed in the first half of 2015 and both Anglo American and Lafarge will work towards completing the final terms of a definitive agreement on Anglo's sale of interest during the third quarter this year.
Anglo American said it intends to use the proceeds from the Lafarge Tarmac sale to pay down some of its debt.
By Tom McIvor; [email protected]; @TomMcIvor1
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