You may already have heard that Anglo American has this morning issued an announcement
about the future of one of our parent companies, Tarmac.
Anglo American announced an agreement to form a 50:50 joint venture, combining Tarmac
and Lafarge’s UK construction materials businesses. As such I felt it was important for me to
update you as soon as possible on these developments.
The formation of the joint venture will create a new, stand alone business that will be
independently managed by its own Board of Directors.
It is important to stress that this proposal is subject to various conditions, including regulatory
approval, and is in the preliminary stages. It is too early to speculate whether this proposal will
actually happen or not or to give any meaningful indication of timescales. Until this outcome is
known, Tarmac, Lafarge and Midland Quarry Products will continue to operate as separate,
I can assure you that I am committed to keeping you up to date on any further news or
progress in respect of this proposal.
Despite this period of uncertainty, we will stay focused and maintain the professionalism and
high level of service you have come to expect of us.
I understand that some of you may have questions or concerns, which you can raise with youraccount manager or contact myself or Murray direct however as these discussions are in thepreliminary stages, it may be too early for us to give you any further detail.
Managing Director – Midland Quarry Products Ltd
Q. What will happen to MQP?
We don’t know at this stage. MQP is a very successful JV with Hanson and Tarmac.
Both companies want it to continue to prosper.
Q. I have placed an order with MQP – should I be concerned? Will I still receive it?
No, you should not be concerned. You will still get your order as there are no changes
to the way you do business with us, it is business as usual.
Q. Is it true that Tarmac is going into a joint venture with Lafarge?
Anglo American plc and Lafarge SA have today announced their agreement to combine
both companies’ UK construction materials assets principally involved in the production
and sale of aggregates, asphalt, ready-mix concrete, cement and road contracting
Q. How has this proposal come about?
This joint venture creates a new industry proposition which is expected to unlock significant value and benefit customers.
Q. When is this going to happen?
Completion of the transaction is conditional upon a number of factors including clearance from the relevant regulatory authorities.
Q. So what does this means to me as a customer?
There will be no change in the way you do business with us – it’s business as usual.
Q. Who will the ultimate owners be – Anglo American or Lafarge?
The agreement is to form a 50:50 joint venture with its own Board of Directors led by an
independent Chairman and executive management teams drawn from both businesses.
Q. Isn't there a competition issue with merging two market leading businesses together? Will the OFT allow this and when will we know their decision?
The transaction is subject to clearance from the regulatory authorities and we will be cooperating with them to achieve clearance as quickly as possible.
Q. What will the new company be called and will we keep the Tarmac brand?
A new name for the joint venture has not yet been determined and will be announced in
Q. When will I receive more information on this?
We are committed to keeping you promptly informed of any news or progress. In the
meantime if you have any questions or queries please speak to your usual account
manager who will be able to help you.
18 February 2011