Deal is expected to deliver £60m in savings and sales in the region of £1.8bn
Anglo American and Lafarge are to merge their operation in the UK to create a giant construction materials firm.
The merged business is expected to deliver £60m in savings and sales in the region of £1.8bn.
Anglo American put Tarmac up for sale several years ago but failed to find a buyer. The firm said it would still seek to sell its interest in the joint venture over time.
Cynthia Carroll, chief executive of Anglo American, said: “We are excited to be bringing together two high quality and complementary UK businesses to create a compelling new industry proposition through which we expect to unlock significant value.”
While Anglo American’s objective remains to divest its interests in the joint venture over time, this transaction positions us well to maximise value.”
Bruno Lafont, chairman and chief executive of Lafarge, said: “This new, leading construction materials company, built on the strengths and proud histories of two great teams, will create more value to customers, with an enhanced and larger offer of products and services.”
“For Lafarge, this deal is cash neutral, is accretive to Lafarge shareholders and illustrates our strong commitment to the UK market”.