Anglo American (AAL) has agreed to sell its stake in Lafarge Tarmac less than two years after the entity came into being through a joint venture with Lafarge SA. The French cement/aggregate giant will pay Anglo a minimum of £885m (on a debt and cash-free basis) for its 50 per cent stake in the company, before it is hived off to the highest bidder.
The sale has been precipitated in order to facilitate the proposed €40bn (£31.8bn) mega-merger of Lafarge SA with Switzerland's Holcim. The tie-up will require major divestments from both parties in order to secure regulatory approval from European competition authorities.
Anglo American said it would use the cash from the sale to pay down outstanding debt - around £6.3bn at the 2013 year-end - and concentrate on its core mining activities.
