Anglo American to sell off stake in Lafarge JV

7th Jul 2014 07:05

Mining giant Anglo American is to offload its 50% stake in UK aggregates joint venture (JV) with French group Lafarge, just a year and a half after it was formed.The holding will be sold for a minimum value of £885m on a debt- and cash-free basis.The Anglo-Lafarge JV, which combines the companies' cement, aggregates, ready-mixed concrete, asphalt and waste services, was set up in January 2013.However, Lafarge intends to sell off the whole JV to the European Commission as one of the conditions of its proposed merger with Swiss-based peer Holcim, which is expected to complete in the first half of 2015."Anglo American expects to use the proceeds to pay down debt," the company said.As of December 31st 2013, Anglo's 50% reported interest in Lafarge Tarmac's gross assets was £1.43bn, including goodwill. However, the JV had made a pre-tax loss of £33m last year.BC