The new company, called Lafarge Tarmac, combines the UK cement, aggregates, ready-mix concrete, asphalt and asphalt surfacing, maintenance services, and waste services businesses of Anglo American’s Tarmac subsidiary and Lafarge.
The two companies expect to generate synergies of £60m through the merger.
Completion of the joint venture follows final clearance from the Competition Commission and the required sale of a portfolio of Tarmac and Lafarge construction materials operations in the UK. This sale, to Indian steel magnate Lakshi Mittal, completed yesterday.
The agreed sale of Tarmac's 50% ownership interest in Midland Quarry Products is subject to a right of pre-emption in favour of Hanson Quarry Products Europe and, as a result, the completion of this transaction is pending.
Anglo American chief executive Cynthia Carroll said: "We have successfully united two high quality and complementary UK businesses to create the leading UK construction materials company, with high quality assets, two experienced management teams, and a portfolio of well-recognised, innovative brands."
Lafarge chairman & chief executive Bruno Lafont added: "The closing of this transaction and the creation of a new British construction materials champion reinforces Lafarge's ongoing commitment to the UK market and its efforts to continuously improve its offering to customers, as well as playing a full role in developing the infrastructure needed for a growing economy."
As announced in November, the Lafarge Tarmac leadership team includes Cyrille Ragoucy as CEO, Guy Young as CFO and Jamie Pike as non-executive chairman.
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