Mining company says deal won't take place "until credit market conditions improve"

Mining company Anglo American has shelved its £3bn sale of construction materials business Tarmac due to the credit squeeze.

In its financial results today the group said the deal would not happen “until current credit market conditions improve”.

Anglo’s accounts for the year ended 31 December 2007 included costs of $55m (£28m) related to the proposed sale.

Potential bidders are said to include Lafarge, Cemex and Irish firm CRH.

Anglo bought Tarmac for £1.2bn in November 1999 and it has businesses in the UK, Europe and the Middle East.

The sale is believed to be the final step in Anglo’s restructuring plan, launched a back in 2005, to focus more on its core mining operations and prevent it from becoming a takeover target.