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Construction Giants LaFarge and Tarmac to Merge UK Operations

December 20, 2012

The UK concrete industry will shortly have a new leading construction materials company, as heavyweights LaFarge and Tarmac are due to join forces, portfolios and skilled management teams sometime in early 2013.

The multi-billion pound mining giant Anglo American have been putting in place moves to merge its own subsidiary company Tarmac with the UK operations of French business LaFarge, combining the two’s cement, aggregates, ready-mixed concrete, asphalt and waste services in their respective UK branches.

The proposed merger has prompted the sale of some operational assets from both companies to Lakshmi Mittal, a private buyer from Mittal Investments (and Britain’s richest man). Concerns over a massive reduction in the level of competition for the UK concrete industry initiated the sale, as Anglo American moved to appease the Competition Commission following the domineering merger of the two giants.

It’s unclear as to how this will affect existing employees from both companies, with fears over job losses yet to be addressed and rumours of a relocation from Wolverhampton to Solihull of Tarmac’s headquarters.

In a recent press release, Anglo American have already detailed the structure of the management team for the proposed venture, including top level staff from both companies, and an outsider, former Foseco chief executive Jamie Pike, as non-executive chairman. Tarmac CFO Guy Young will become CFO of the new company, while LaFarge senior VP of health and safety, Cyrille Ragoucy, will move over to act as chief executive.

Roadmaster Concrete Mixers see this merger as an encouraging sign for the industry, as both parties involved have suggested a boom period following economic recovery in the country, allowing us to continue to provide efficient and first rate concrete delivery to customers nationwide.