Lafarge sets its sights on Tarmac deal

Lafarge is determined not to let Tarmac slip through its fingers after missing out on Hanson, according to a senior company source.

HeidelburgCement completed its £8bn takeover of Hanson in August and, while Lafarge did not bid after the knock-out offer, it had been closely following developments.

According to the source, Tarmac is seen as a “good fit” by the company that, while strong outside the M25, would be keen to break into London and market its special concrete products.

He said: “We’re certainly looking at them. We think the main competition will come from CRH as the credit crunchers seem to be putting the brakes on the venture capitalists.”

He also indicated that the company thought Tarmac was undervalued at £3bn. “Although we’re not interested in a bidding war we think Tarmac may go for as much as £5bn.”

Lafarge chairman and chief executive Bruno Lafont told CJ the company was always looking for “synergies” but refused to be drawn on any specific deals.