The proposed 50:50 UK joint venture between Lafarge and Anglo American has agreed to sell a portfolio of construction materials operations in the country for £285 million (€355 million) to steel giant Mittal as part of conditions laid down by the Competition Commission.

Private investment company Mittal Investments is to buy the assets, consisting of the 50% stake in Midland Quarry Products that was owned by Tarmac (Anglo American’s UK operation) as well as a 1.4 million tonne capacity cement plant and related depots in Hope, Derbyshire.

In addition, Mittal is also buying a network of 172 ready mixed concrete plants, five aggregates quarries, two asphalt plants, one marine aggregates wharf and one rail-linked aggregates depot from the joint venture.

Lakshmi Mittal, owner of family investment vehicle Mittal and is an Indian steel tycoon. He is the chairman and chief executive officer of ArcelorMittal. The deal with Lafarge and Anglo American represents the first time that Mittal has invested in the UK aggregates industry.

The sale of these assets was the principal condition to receiving final clearance from the Competition Commission for the formation of the 50:50 joint venture, which will combine Tarmac’s and Lafarge’s cement, aggregates, ready-mixed concrete, asphalt plus asphalt surfacing and maintenance services, and waste services businesses in the UK.

The companies said they expected to be able to formally establish the joint venture in early 2013.

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