Lafarge Tarmac to be sold

Anglo American plans to sell its 50% stake in Lafarge Tarmac to Lafarge for £885 million ($1.5 billion).

Anglo American has reached an agreement in principle for the sale of its 50% ownership interest in Lafarge Tarmac Holdings Limited ("Lafarge Tarmac" or the "JV") to Lafarge SA ("Lafarge") for a minimum value of £885 million (approximately $1.5 billion) in cash, on a debt and cash free basis and subject to other customary working capital adjustments.

An announcement is being made at this stage as Lafarge intends to offer a full divestment of the JV to the European Commission as a remedy for the UK market in respect of the proposed merger of Lafarge and Holcim.

Under the terms of the in principle agreement, which is not legally binding, the sale will be subject to a number of conditions including the completion of the Lafarge/Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy and approval of this sale transaction by the necessary regulators. Lafarge and Holcim have announced that they expect the merger to be completed in the first half of 2015. Anglo American and Lafarge will work towards finalising the terms of a definitive agreement in the third quarter of 2014.