Anglo American has confirmed it is selling its 50% ownership in Lafarge Tarmac for a minimum of £885 million.

An announcement is being made as Lafarge intends to offer a full divestment of the JV to the European Commission as a remedy for the UK market in respect of the proposed merger of Lafarge and Holcim Ltd. Under the terms of the in principle agreement, which is not legally binding, the sale will be subject to a number of conditions including the completion of the Lafarge / Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy and approval of this sale transaction by the necessary regulators. Lafarge and Holcim have announced that they expect the merger to be completed in the first half of 2015.

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In the event that a subsequent divestment of Lafarge Tarmac is agreed within 18 months of this sale being completed, Anglo American will participate in a minority proportion of the upside beyond a small premium to the terms of this proposed transaction.

(CD/MH)