Mining giant Anglo American has agreed to sell its holding in joint venture Lafarge Tarmac to French partner Lafarge for up to $AU1.62 billion.
The deal is subject to several conditions, including the completion of Lafarge’s multi-billion-dollar merger with Swiss group Holcim, the London-listed group announced on Monday in a statement.
Lafarge added that it plans to sell off the tarmac division once it gains full control, as part of divestments aimed at winning regulatory approvals for the Holcim merger.
“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,” the company said.
Both Lafarge and Holcim outlined on Monday a list of operations that they would sell in order to win the nod from regulators.
Lafarge Tarmac was included in the list alongside other European businesses in Austria, France, Germany, Hungary, Romania and Serbia. The list also includes operations in Canada, Mauritius, the Philippines and Brazil.
The merger will create the world’s biggest concrete group worth 40 billion euros, with an eye to booming construction in emerging markets.
Lafarge and Holcim expect the tie-up to be completed in the first half of next year.