LONDON: Anglo American and Lafarge are to merge their operations in the UK to create a construction materials giant.
The deal is expected to deliver £60m in operational savings and create a business with sales in the order of £1.8bn making it a dominating force in the UK, alongside Cemex and Hanson, now part of Heidelberg Cement.
Anglo decided to leave the UK construction materials market some time back and plans to sell its interest in the joint venture eventually.
Cynthia Carroll, chief executive of Anglo American, said: "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.
Both UK businesses will operate independently until the regulatory authorities clear the deal.
