Diversified miner Anglo American and cement producer Lafarge on Tuesday completed the merger of their UK-based assets after receiving the final go-ahead from the UK Competition Commission.
The newly formed 50:50 joint venture (JV), Lafarge Tarmac, comprised the parties’ cement, aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services, and waste services operations within the UK.
Anglo, in a statement to shareholders, said the JV could generate synergies of about £60-million on the back of improved operational, logistical and purchasing efficiencies, as well as new value-added products and a wider geographical spread.
Jamie Pike was appointed nonexecutive chairperson, along with Cyrille Ragoucy as CEO and Guy Young as CFO.
The commission’s approval followed the completion of the sale of up to $452-million of Anglo’s and Lafarge’s construction materials operations.
However, the sale of Anglo subsidiary Tarmac’s 50% stake in Midland Quarry Products was pending, owing to a right of pre-emption in favour of Hanson Quarry Products Europe.
The construction materials JV would start trading on Tuesday.