Anglo American to Sell Lafarge Tarmac Stake for £885m

Mining giant Anglo American Plc is to sell its 50 percent stake in Lafarge Tarmac to Lafarge for at least £885 million ($1.5bn) in cash, on a debt and cash free basis, it said on Monday.

Anglo American said the sale will be subject to a number of conditions including the completion of the merger between Lafarge and materials/aggregates specialist Holcim, the divestment of Lafarge Tarmac being accepted as a suitable remedy and approval by the necessary regulators, including the European Commission.

To obtain the regulatory approval for a merger that would create the world’s largest cement manufacturer, Lafarge and Holcim must shed about £3.9bn in assets.

Anglo American and Lafarge will work towards finalising the terms of a definitive agreement in Q3 2014, the company said, and the merger is expected to be completed in the first half of 2015.