Tarmac sale: Anglo looking for offers

Anglo-American has confirmed that it is ready to listen to offers for Tarmac.

The asphalt and building materials business is expected to fetch around £3bn.

Likely suitors include trade buyers such as Lafarge, Cemex, Holcom and CRH as well as private equity groups.

Tarmac’s market share is 21% in aggregates, 28% in asphalt and 24% in ready mix concrete. Analysts suggest that Lafarge would make the most suitable buyer as its small presence in the UK aggregates, asphalt and ready-mix markets would be less likely to interest the regulatory authorities.

The disposal had been widely expected after Cynthia Carroll, Anglo’s new chief executive, announced a review of the company’s assets. Anglo is a global minerals operator and there is little synergy between aggregates and mining for such materials as platinum.

Tarmac’s operational performance is well below that of Aggregate Industries, its leading UK rival. It is also adrift of Hanson, whose shareholders have this week approved a takeover offer from HeidelbergCement.