THE parent company of Wolverhampton-based Tarmac UK, Anglo American, is to form a 50:50 joint venture with French firm Lafarge, it was announced today.
The two companies will combine their cement, aggregates, ready-mixed concrete, asphalt and contracting businesses in the UK, comprising Tarmac UK, Lafarge Cement UK, Lafarge Aggregates and Concrete UK.
The transaction, subject to regulatory approval, will create a portfolio of assets which they said would benefit from drawing on their respective geographical operations.
The combined sales of these two businesses in 2010 amounted to £1.8bn with a combined EBITDA of £210m.
The combination was expected to deliver substantial recurring synergies of at least £60m per annum, the firms said in a joint statement.
The JV will operate with its own board of directors led by an independent chairman and executive management teams drawn from both businesses.
Anglo American chief executive Cynthia Carroll 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.”
Lafarge chairman and chief executive Bruno Lafont 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.”
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