Anglo American has announced its intention to sell its 50% interest in Lafarge Tarmac to Lafarge for a minimum value of £885 million ($1.5 billion) on a debt and cash free basis and subject to other customary working capital adjustments. The transaction is subject to Lafarge/ Holcim merger related conditions, including Lafarge Tarmac being deemed an acceptable divestment remedy by the regulators.
Aside from this proposed transaction, Anglo American expects to receive additional cash proceeds of between £57 million and £67 million (approximately $98 million to $115 million) as a result of prior transactions involving the formation of Lafarge Tarmac and the transfer of Tarmac Building Products assets to Lafarge Tarmac.
Lafarge Tarmac was formed in January 2013 following the merger of Anglo American and Lafarge’s cement, aggregates, ready-mixed concrete, asphalt and asphalt surfacing and maintenance services, and waste services businesses in the United Kingdom. As at 31 December 2013, Anglo American’s 50% reported interest in Lafarge Tarmac’s gross assets was £1,430 million, including goodwill. For the period ending 31 December 2013, prior to any Anglo American Group adjustments, the loss before tax attributable to 50% of Lafarge Tarmac was £33m.
Anglo American is one of the world’s largest mining companies, headquartered in the UK and is listed on the London and Johannesburg stock exchanges. The company’s mining operations, pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.
