Anglo American and Lafarge to sell UK assets to steel tycoon Lakshmi Mittal for $452 mn

Diversified miner Anglo American and French cement giant Lafarge today agreed to sell their UK assets to steel tycoon Lakshmi Mittal, for £285 million ($452 million), in order to ease regulatory concerns for their UK building materials joint venture.

The sale was a pre-condition set by the UK Competition Commission in order for the two companies setting up a UK joint venture by merging their building materials business.

Lakshmi Mittal acquired the assets through Mittal Investments, the private investment vehicle of the Mittal family.

Paris-based Lafarge and London-based Anglo American said the sale would include a cement plant in Hope, Derbyshire, with a capacity of 1.4 million tonnes, and related depots, a network of 172 ready mix concrete plants, five aggregates quarries, two asphalt plants, one marine aggregates wharf and one rail-linked aggregates depot.

The sale also includes Anglo American unit Tarmac's 50 per cent stake in Midland Quarry Products, one of the country's key suppliers of hard rock and asphalts.

The price for the assets includes up to £30 million contingent on performance over the next three years.