Holcim to buy Tarmac's Spanish operations

By Chris Sleight13 June 2008

Holcim has agreed to acquire Tarmac Iberia from mining giant Anglo American. The deal is worth € 148 million, and is expected to close in September subject to regulatory approval.

Tarmac Iberia is based in Madrid and has operations comprising eight quarries and 43 ready-mixed concrete plants. These are mainly in the vicinity of Madrid, on the Mediterranean coast and in the North-East region of Catalonia.

Last year the company sold some 2,8 million m3 of ready-mixed concrete and 7,8 million tonnes of aggregates. Revenues totalled € 200 million and Tarmac Iberia employs 460 people.

A statement from Holcim said, "The acquisition of this well-positioned construction materials company strengthens and complements the ready-mixed concrete and aggregates business of Holcim Spain in the centre of the country and on the Mediterranean coast and opens up synergies."

Holcim's existing operations in Spain comprise six cement plants, 22 quarries, 70 ready-mix plants and six dry mortar plants. These employ a total of 1900 people and generated revenues of € 660 million last year.

Tarmac disposal

Anglo American announced last year that it planned to sell Tarmac following a strategic review that concluded the business was outside the company's core area of mining. Anglo reportedly received several expressions of interest from other heavy materials companies as well as from the private equity sector.

This announcement was made in August, and the company said it hoped to conclude the sale in the first half of this year. However, an announcement in February said the sale had been postponed due to the turmoil in global credit markets.

A spokesman for Anglo American said the sale of the Tarmac Iberia as a stand-alone business was independent of the company's plans to dispose of Tarmac as a whole, and was not the start of a piece-by-piece sale process. "This shouldn't be seen as a part of any other sale process," he said.

He added, "We remain committed to the sale of Tarmac at the appropriate time. That will be when credit markets have recovered, which they clearly haven't yet."

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