| Fri 18 Feb 2011, 9:28 | | AGL - Anglo American plc - Anglo American and Lafarge to create a leading UK |
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AGL
ANAAL
AGL - Anglo American plc - Anglo American and Lafarge to create a leading UK
construction materials company
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
("Anglo American plc" or "the company")
Anglo American and Lafarge to create a leading UK construction materials company
Anglo American plc ("Anglo American") and Lafarge SA ("Lafarge") announce their
agreement to combine their cement, aggregates, ready-mixed concrete, asphalt and
contracting businesses in the United Kingdom, comprising Tarmac Limited ("Tarmac
UK") and Lafarge Cement UK, Lafarge Aggregates and Concrete UK ("Lafarge UK").
The Transaction will form a 50:50 joint venture and will create a leading UK
construction materials company, with a portfolio of high quality assets drawing
on the complementary geographical distribution of operations and assets, the
skills of two experienced management teams and a portfolio of well-known and
innovative brands. The combined sales of these two businesses in 2010 amounted
to GBP1.8 billion ($2.8 billion), with combined EBITDA of GBP210 million ($323
million).
This combination is expected to deliver substantial recurring synergies of at
least GBP60 million ($96 million) per annum. Such synergies are expected to be
generated by increased operational efficiencies, improved logistics, the
introduction of value-added products across a wider geographic reach and other
opportunities.
The joint venture`s complementary geographical and product portfolios are also
expected to create a business optimally positioned to benefit from economic
recovery.
Cynthia Carroll, Chief Executive of Anglo American, said: "We are excited to be
bringing together two high quality and complementary UK businesses to create a
compelling new industry proposition through which we expect to unlock
significant value. While Anglo American`s objective remains to divest its
interests in the joint venture over time, this transaction positions us well to
maximise value."
Bruno Lafont, Chairman and Chief Executive of Lafarge, said: "This new leading
construction materials company, built on the strengths and proud histories of
two great teams, will create more value to customers, with an enhanced and
larger offer of products and services. For Lafarge, this deal is cash neutral,
is accretive to Lafarge shareholders and illustrates our strong commitment to
the UK market."
The joint venture will operate with its own Board of Directors led by an
independent Chairman and executive management teams drawn from both businesses.
Completion of the Transaction is conditional upon regulatory approvals. Both
Lafarge UK and Tarmac UK operations will continue to operate independently until
obtaining such approvals.
Notes to editors:
Tarmac UK and Lafarge UK - current operations
Lafarge UK Tarmac UK
Total employees Total employees
2,800 4,500 (approximately)
Cement Cement and Lime
5 plants with a network of 14 1 integrated plant and 3
depots and terminals depots
Aggregates Aggregates
38 quarries, 19 depots, and 118 quarries and 40 recycling
20 recycling sites plants
Ready-mixed concrete Ready-mixed concrete
100 fixed plant sites, 6 180 fixed sites
mobile plants
Asphalt
Asphalt 69 plants
19 fixed plant sites with 3
mobile asphalt plants +JVs (including 50% share in
Midlands Quarry Products with
+ JVs (including 50% share in Heidelberg and other local
Scotash) JVs)
Gross Assets contributed
GBP1.63 billion ($2.55
billion)
Anglo American plc is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans precious metals
and minerals - in which it is a global leader in both platinum and diamonds;
base metals - copper and nickel; and bulk commodities - iron ore, metallurgical
coal and thermal coal. Anglo American is committed to the highest standards
of safety and responsibility across all its businesses and geographies and to
making a sustainable difference in the development of the communities around
its operations. The company`s mining operations and extensive pipeline of growth
projects are located in southern Africa, South America, Australia, North America
and Asia. www.angloamerican.com
Lafarge is the world leader in building materials, with top-ranking positions in
all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000
employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global
"Dow Jones Sustainability Index" in 2010 in recognition of its sustainable
development actions. With the world`s leading building materials research
facility, Lafarge places innovation at the heart of its priorities, working for
sustainable construction and architectural creativity.Additional information is
available on the web site at www.lafarge.com.
For further information, please contact:
ANGLO AMERICAN
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Anna Mulholland, Investor Relations
Tel: +27 (0)11 373 6683
Kgapu Mphahlele, Investor Relations
Tel: +27 (0)11 373 6239
LAFARGE
Communications
Christel des Royeries: +33(0) 1 44 34 19 47
Christel.desroyeries@lafarge.com
Claire Mathieu : +33(0) 1 44 34 18 18
Claire.mathieu@lafarge.com
Caroline Winkler: + 33(0) 1 44 34 11 70
Caroline.winkler@lafarge.com
Investor Relations
Jay Bachmann : +33 (0) 1 44 34 93 71
Jay.bachmann@lafarge.com
Daniele Daouphars: +33 (0) 1 44 34 11 51
Daniele.daouphars@lafarge.com
Laurence Le Gouguec: +33 (0) 1 44 34 94 59
Laurence.legouguec@lafarge.com
18 February 2011
Sponsor: UBS South Africa (Pty) Ltd
Date: 18/02/2011 09:28:47 Produced by the JSE SENS Department.
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