Member Article

Mittal to buy Lafarge and Tarmac businesses

Construction materials firms, Lafarge and Anglo American have announced they will sell some UK operations to steel magnate, Lakshmi Mittal.

It will mean a portfolio of operations, including Anglo American’s Tarmac business and Tarmac’s 50% ownership of Midland Quarry Products Limited, will be sold to Mittal Investments.

The deal is worth £227m, including up to £30m contingent on the performance of the underlying assets over the next three years.

The move is part of an agreement made last year, and is the principal condition of the Competition Commission’s decision on a joint venture between the two companies.

As part of the deal, the large cement plant at Hope in Derbyshire will be sold, as will a network of 172 ready-mix concrete plants.

Completion of the joint venture between Anglo American and Lafarge is expected in early 2013, and will create a new UK construction materials company.

This was posted in Bdaily's Members' News section by Tom Keighley .