By THE AFRICA BAZAAR Staff Writer
Anglo American Plc said it has reached an agreement to sell heavy building products supplier Tarmac Building Products Limited to Lafarge Tarmac Holdings Limited, a 50/50 joint venture between Lafarge’s and Anglo American’s construction materials and services businesses in the United Kingdom.
While the terms of the transaction remain confidential, the company said it expects the transaction to close in the first half of 2014.
Until necessary approvals are obtained, both TBP and Lafarge Tarmac operations will continue to operate independently, the company said.
Lafarge Tarmac, the equally owned joint venture, was formed following the merger of Lafarge’s UK operations and Anglo American’s Tarmac business, to combines both companies’ cement, aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services, and waste services businesses to create the UK’s leading construction materials and services company. It began trading on January.
This is Anglo American’s second sale announcement this month.
Earlier in the month, Anglo American said it completed the 100 percent sale of its Amapá iron ore operation in Brazil to Zamin Ferrous Ltd for $134 million initial total cash and net completion adjustments.
As part of the transaction, Anglo American agreed to take responsibility for, and the risks and rewards of, the insurance claim in relation to the Santana port incident by acquiring the claim at full claim value.
Anglo American plans to use the proceeds from the sale to pay down debt.
The Santana port incident, a major geological event that occurred on March of this year at the company’s Santana port facility resulted in the destruction of the port ship loader infrastructure and sampling tower and the tragic loss of six lives.
Following that incident, Anglo American, who was already in negotiation to sell 70 percent of its interest in Amapá to Zamin, entered into further discussions with its partner Cliffs Natural Resources and Zamin and subsequently acquired its remaining 30 percent interest in Amapá from Cliffs. It then agreed to amend the sale agreement with Zamin to reflect its disposal of a 100 percent interest in Amapá to Zamin.
The sale will allow a more certain future for all the stakeholders of Amapá and for Anglo American to deliver on its strategic objectives.