Lafarge S.A. in Joint Venture with Anglo American PLC

February 18, 2011

Cleary Gottlieb is representing long term client Lafarge S.A. on all aspects of a 50:50 joint venture with Anglo American PLC to combine their cement, aggregates, ready-mixed concrete, asphalt and contracting businesses in the United Kingdom, comprising Lafarge’s UK operations in Lafarge Cement UK, Lafarge Aggregates and Concrete UK, and Anglo American’s Tarmac business, in Tarmac Limited. The transaction was announced on February 18, and is expected to close later this year pending regulatory approvals. Both Lafarge’s UK operations and Tarmac will continue to operate independently until obtaining such approvals.

The joint venture will create a significant UK construction materials company with a portfolio of established assets drawing on a complementary geographical distribution of operations and a series of well-known brands. The 2010 combined sales of the two businesses amounted to £1.8 billion with a combined EBITDA of £210 million.

Cleary Gottlieb has previously advised Lafarge in connection with its $15 billion acquisition of Orascom Building Materials Holding S.A.E. in 2008, its €1 billion+ capital increases in 2003 and 2009, and its first SEC-registered bond offering totalling $2 billion in 2006.