Mining company Anglo American has announced it plans to sell its 50% stake in its UK construction materials joint venture, Lafarge Tarmac. The deal is linked to the proposed merger between Lafarge and Holcim.
The news came as Lafarge and Holcim published a list of assets they plan to divest, which the companies hoped would allow them to secure regulatory approval for their merger. The list includes the Lafarge Tarmac business, which encompasses all of Lafarge’s operations in the UK.
Anglo American said it was seeking a minimum of UK£ 885 million (US$ 1.5 billion) for its stake in Lafarge Tarmac. The agreement to sell the business is not legally binding, and is conditional on the completion of the Lafarge/Holcim merger as well as regulators accepting the divestment of Lafarge Tarmac as a suitable remedy against competition concerns.
Lafarge and Holcim have said they expect to complete their merger in the first half of 2015. Anglo American said it was working to establish a definitive agreement on the Lafarge Tarmac business in the third quarter of 2014.
Anglo American said it would use the proceeds of the sale to pay down debt.