Tarmac in JV with Lafarge
Mining group Anglo American has hived off its construction materials business Tarmac UK into a joint venture (JV) with the French cement maker Lafarge. Having struggled for more than three years to find a buyer for the offshoot, Anglo American announced it has agreed to merge Tarmac UK with Lafarge's British construction supplies businesses through a 50:50 JV. The merger could create an independently run £1.8 billion turnover business employing about 7,300 people. The move came as Lafarge, which has a cement factory near Dunbar in East Lothian, halved its dividend as part of a plan to reduce debt. "While Anglo American's objective remains to divest its interests in the JV over time, this transaction positions us well to maximise value," said Cynthia Carroll, Chief Executive Officer, Anglo American PLC.