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Anglo to sell interest in Lafarge Tarmac

Lafarge Tarmac

Anglo American announce intention to sell their 50% interest in Lafarge Tarmac to Lafarge SA

IN a separate announcement, Anglo American plc have today announced that they have reached an agreement in principle for the sale of their 50% ownership interest in Lafarge Tarmac to Lafarge SA for a minimum value of £885 million (US$1.5 billion) in cash, on a debt- and cash-free basis, and subject to other customary working capital adjustments.

The agreement is subject to the LafargeHolcim merger-related conditions, including Lafarge Tarmac being deemed an acceptable divestment remedy by the regulators.

Anglo say the announcement is being made at this stage due to Lafarge’s intention to offer a full divestment of the Lafarge Tarmac joint venture to the European Commission as a remedy for the UK market in respect of the proposed merger of Lafarge and Holcim.

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 LafargeHolcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy, and approval of this sale transaction by the necessary regulators.

With Lafarge and Holcim expecting their merger to be completed in the first half of 2015, Anglo American and Lafarge say they will work towards finalizing the terms of a definitive agreement for Lafarge Tarmac in third quarter of 2014.

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.

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