Anglo American has announced its intention to sell its 50% interest in Lafarge Tarmac to Lafarge for a minimum value of £885 million (R16.2 billion)

Anglo American has reached an agreement in principle for the sale for a minimum value of £885 million in cash, on a debt and cash free basis and subject to other customary working capital adjustments.

An announcement is being made as Lafarge plans to offer a full divestment of the JV to the European Commission as a remedy for the UK market in respect of the proposed merger of Lafarge and Holcim Ltd.

Under the terms of the in principle agreement, the sale will be subject to a number of conditions including the completion of the Lafarge /Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy and approval of this sale transaction by the necessary regulators. Lafarge and Holcim have announced that they expect the merger to be completed in the first half of 2015. Anglo American and Lafarge will work towards finalising the terms of a definitive agreement in the third quarter of 2014.