Big two now trading after JV completion

ANGLO American and Lafarge have announced completion of the 50:50 joint venture that creates the UK’s leading construction materials business.
The deal sees the pair combine their cement, aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services, and waste services businesses in the UK. Known as Lafarge Tarmac, the joint venture is now trading.
Completion follows final clearance from the Competition Commission, predicated on the completed sale of a portfolio of Tarmac and Lafarge construction materials operations in the UK. The sale of Tarmac’s 50% ownership interest in Midland Quarry Products is subject to a right of pre-emption in favour of Hanson Quarry Products Europe Ltd and completion of that transaction is pending.
A spokesman said: “The Lafarge Tarmac combination is expected to generate synergies of £60m through improving operational logistical and purchasing efficiencies and the introduction of value-added products across a wider geographic area.”
Cynthia Carroll, chief executive of Anglo American, said: “We have successfully united two high-quality and complementary UK businesses to create the leading UK construction materials company, with high-quality assets, two experienced management teams, and a portfolio of well-recognised, innovative brands.”