Lafarge Tarmac

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Lafarge Tarmac Limited
Joint venture
(Private limited company)
Industry Building materials
Founded March 2013
Headquarters Solihull, Birmingham, United Kingdom
Area served
United Kingdom
Key people
Cyrille Ragoucy (Chief Executive Officer)
Products Aggregates
Ready-mix concrete
Asphalt
Asphalt surfacing
Cement
Services Maintenance services
Waste services
Revenue £1.8 billion (2010 pro forma)
Owner Anglo American plc (50%)
Lafarge (50%)
Subsidiaries Tarmac Building Products
Website www.lafargetarmac.com

Lafarge Tarmac Limited is a British building materials company headquartered in Solihull, Birmingham, and a 50:50 joint venture between Anglo American plc and Lafarge, which is planning to merge with cement giant Holcim Ltd., in a bid to become the world's biggest cement producer. As part of the merger process, in consideration of anti-competition regulators concerns, Anglo American reached agreement with Lafarge SA for it to acquire its 50% stake in Lafarge Tarmac for $885 million ($1.5 billion) in July 2014.[1]

History[edit]

In February 2011 Anglo American and Lafarge announced their intention to merge their British construction materials businesses, excluding Lafarge's UK gypsum activities.[2][3]

In September 2011 the proposed transaction was referred to the Competition Commission by the Office of Fair Trading, and in February 2012 the Commission reported that it had a "number of concerns" about the combination.[4]

The deal was set to combine Anglo American's Tarmac UK unit, employing 4,500 people, with Lafarge's cement, concrete and aggregate quarries, depots and terminals. Due to the size of the venture, the Office of Fair Trading referred it to the UK's Competition Commission who concluded in May 2012 that due to the potential loss of competition in the aggregates, asphalt, cement and ready-mix concrete markets, some of their assets should be sold.[5] In November 2012, Lafarge and Anglo American agreed to the sale of £285 million worth of British assets to Mittal Investments.[6] In December of that year, Anglo American's Tarmac unit became Hope Ready Mixed Concrete Limited,[7] whilst Lafarge's assets became Hope Cement Limited.[8] The deal was completed in January 2013 with the creation of Hope Construction Materials.[9]

The merger was completed in March 2013 following receipt of necessary approvals from the Competition Commission.[10]

In April 2014, Lafarge announced it was merging with Switzerland-based cement giant Holcim Ltd., to form the world's largest cement producer, LafargeHolcim. Three months later, in July 2014, Anglo American advised it was selling its 50% interest to Lafarge SA for £885 million ($1.5 billion), in part to allow the merger to clear regulatory hurdles.[1]

References[edit]

  1. ^ a b "Mining giant Anglo American to sell stake in Lafarge Tarmac for $1.5 bn". London Mercury. Retrieved 7 July 2014. 
  2. ^ "Anglo finds a new home for Tarmac with Lafarge deal". The Independent. 19 February 2011. Retrieved 25 March 2013. 
  3. ^ "Anglo shifts unloved Tarmac UK into Lafarge venture". Reuters. 18 February 2011. Retrieved 25 March 2013. 
  4. ^ "Lafarge-Tarmac merger in doubt". The Independent. 22 February 2012. Retrieved 25 March 2013. 
  5. ^ "REFERENCE RELATING TO THE ANTICIPATED JOINT VENTURE BETWEEN ANGLO AMERICAN PLC AND LAFARGE S.A.". The UK Competition Commission. Retrieved 2013-06-12. 
  6. ^ "Lafarge and Anglo American sell UK assets to Mittal". Reuters. Retrieved 2013-06-12. 
  7. ^ "Hope Ready Mixed Concrete Limited". Company Check. Retrieved 2013-06-19. 
  8. ^ "Hope Cement Limited". Company Check. Retrieved 2013-06-19. 
  9. ^ "AGGREGATES, CEMENT AND READY-MIX CONCRETE MARKET INVESTIGATION". Competition Commission. Retrieved 2013-06-19. 
  10. ^ "Lafarge Tarmac starts trading after deal approved". Global Cement. 7 January 2013. Retrieved 25 March 2013. 

External links[edit]