TIDMAAL
RNS Number : 4709B
Anglo American PLC
18 February 2011
18 February 2011
Anglo American and Lafarge to create a leading UK construction
materials company
Anglo American plc ("Anglo American") and Lafarge SA ("Lafarge")
announce their agreement to combine their cement, aggregates,
ready-mixed concrete, asphalt and contracting businesses in the
United Kingdom, comprising Tarmac Limited ("Tarmac UK") and Lafarge
Cement UK, Lafarge Aggregates and Concrete UK ("Lafarge UK").
The Transaction will form a 50:50 joint venture and will create
a leading UK construction materials company, with a portfolio of
high quality assets drawing on the complementary geographical
distribution of operations and assets, the skills of two
experienced management teams and a portfolio of well-known and
innovative brands. The combined sales of these two businesses in
2010 amounted to GBP1.8 billion ($2.8 billion), with combined
EBITDA of GBP210 million ($323 million).
This combination is expected to deliver substantial recurring
synergies of at least GBP60 million ($96 million) per annum. Such
synergies are expected to be generated by increased operational
efficiencies, improved logistics, the introduction of value-added
products across a wider geographic reach and other
opportunities.
The joint venture's complementary geographical and product
portfolios are also expected to create a business optimally
positioned to benefit from economic recovery.
Cynthia Carroll, Chief Executive of Anglo American, said: "We
are excited to be bringing together two high quality and
complementary UK businesses to create a compelling new industry
proposition through which we expect to unlock significant value.
While Anglo American's objective remains to divest its interests in
the joint venture over time, this transaction positions us well to
maximise value."
Bruno Lafont, Chairman and Chief Executive of Lafarge, said:
"This new leading construction materials company, built on the
strengths and proud histories of two great teams, will create more
value to customers, with an enhanced and larger offer of products
and services. For Lafarge, this deal is cash neutral, is accretive
to Lafarge shareholders and illustrates our strong commitment to
the UK market."
The joint venture will operate with its own Board of Directors
led by an independent Chairman and executive management teams drawn
from both businesses.
Completion of the Transaction is conditional upon regulatory
approvals. Both Lafarge UK and Tarmac UK operations will continue
to operate independently until obtaining such approvals.
Notes to editors:
Tarmac UK and Lafarge UK - current operations
Lafarge UK Tarmac UK
Total employees Total employees
2,800 4,500 (approximately)
Cement Cement and Lime
5 plants with a network of 14 1 integrated plant and 3 depots
depots and terminals Aggregates
Aggregates 118 quarries and 40 recycling
38 quarries, 19 depots, and plants
20 recycling sites Ready-mixed concrete
Ready-mixed concrete 180 fixed sites
100 fixed plant sites, 6 mobile Asphalt
plants 69 plants
Asphalt +JVs (including 50% share in
19 fixed plant sites with 3 Midlands Quarry Products with
mobile asphalt plants Heidelberg and other local JVs)
+ JVs (including 50% share in Gross Assets contributed
Scotash) GBP1.63 billion ($2.55 billion)
---------------------------------
Anglo American plc is one of the world's largest mining
companies, is headquartered in the UK and listed on the London and
Johannesburg stock exchanges. Anglo American's portfolio of mining
businesses spans precious metals and minerals - in which it is a
global leader in both platinum and diamonds; base metals - copper
and nickel; and bulk commodities - iron ore, metallurgical coal and
thermal coal. Anglo American is committed to the highest standards
of safety and responsibility across all its businesses and
geographies and to making a sustainable difference in the
development of the communities around its operations. The company's
mining operations and extensive pipeline of growth projects are
located in southern Africa, South America, Australia, North America
and Asia. www.angloamerican.com
Lafarge is the world leader in building materials, with
top-ranking positions in all of its businesses: Cement, Aggregates
& Concrete and Gypsum. With 76,000 employees in 78 countries,
Lafarge posted sales of Euros 16.2 billion in 2010. Lafarge was
ranked 6th in the "Carbon Disclosure Project" and entered the
global "Dow Jones Sustainability Index" in 2010 in recognition of
its sustainable development actions. With the world's leading
building materials research facility, Lafarge places innovation at
the heart of its priorities, working for sustainable construction
and architectural creativity. Additional information is available
on the web site at www.lafarge.com.
For further information, please contact:
ANGLO AMERICAN
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Anna Mulholland, Investor Relations
Tel: +27 (0)11 373 6683
Kgapu Mphahlele, Investor Relations
Tel: +27 (0)11 373 6239
LAFARGE
Communications
Christel des Royeries : +33(0) 1 44 34 19 47
Christel.desroyeries@lafarge.com
Claire Mathieu : +33(0) 1 44 34 18 18
Claire.mathieu@lafarge.com
Caroline Winkler : + 33(0) 1 44 34 11 70
Caroline.winkler@lafarge.com
Investor Relations
Jay Bachmann : +33 (0) 1 44 34 93 71
Jay.bachmann@lafarge.com
Daniele Daouphars : +33 (0) 1 44 34 11 51
Daniele.daouphars@lafarge.com
Laurence Le Gouguec : +33 (0) 1 44 34 94 59
Laurence.legouguec@lafarge.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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