Business as usual for Tarmac and Lafarge

Companies say no immediate changes to their operations following regulatory approval for joint venture

TARMAC and Lafarge have reassured customers, suppliers and stakeholders that there will be no immediate changes to the way they do business with either company or to the service they receive from them as a result of this week’s announcement by the Competition Commission.

On Tuesday, the Commission published its Final Report confirming legal approval of the proposed 50:50 joint venture to combine Tarmac and Lafarge’s UK aggregates, asphalt, ready-mixed concrete, cement, road contracting and waste services, subject to a number of conditions and remedies.

These conditions stipulate that a number of aggregates, asphalt and ready-mix concrete and cement assets of Tarmac and Lafarge will need to be sold to independent third parties before the joint venture can proceed.

The assets up for sale will include, among others, Lafarge’s Hope cement works and Dowlow limestone quarry in Derbyshire, and Tarmac’s 50% share in Midland Quarry Products (MQP).

Both parties are now working with the regulators to implement the necessary divestments, with a view to establishing the joint venture as soon as practicable.

However, until the sale of specific sites has been agreed and approved by the Competition Commission, and the joint venture has been legally completed, both businesses will continue to operate independently as two separate legal entities.

Likewise, there will be no immediate change for customers, suppliers and other stakeholders of MQP, who will also continue to trade in the same way as usual.

Meanwhile, Breedon Aggregates, who are known to be among those interested in any assets which become available through the Tarmac/Lafarge divestiture programme, said they would assess any specific opportunities once further details of the proposed disposals had been made available.