Anglo American to Sell its $1.5 Billion Stake in Lafarge Tarmac

Global mining giant Anglo American has announced its intention to sell its 50 percent share in construction solutions provider Lafarge Tarmac for a minimum of $1.5 billion.

French holding company Lafarge will buy back the stake as part of its plans to sell the whole division to please regulators which will allow the merger with Swiss company Holcim.

Under the terms of the in principle agreement, which is not legally binding, the sale will be subject to a number of conditions including the completion of the Lafarge-Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy and approval of this sale transaction by the necessary authorities.

Anglo American and Lafarge expect to finalise a definitive agreement in Q3 this year, with the UK-headquartered miner looking to use the cash boost to pay debts of its own.

The company has interest across the globe in minerals and products including iron ore, metallurgical coal, thermal coal, copper, nickel, niobium, phosphates, platinum and diamonds. It employs 158,900 workers and contractors and recorded an operating profit of $6.6 billion in 2013.

It also has strong interest in the tarmac industry, though this move suggests a stronger concentration on core activities going forward.  

Lafarge Tarmac was formed in January 2013 following the merger of Anglo American and Lafarge's cement, aggregates, ready-mixed concrete, asphalt and asphalt surfacing and maintenance services, and waste services businesses in the United Kingdom.

More information can be accessed here: http://www.angloamerican.com/media/releases/2014pr/07-07-2014.aspx