Lafarge Tarmac has been put up for sale less than 18 months after the joint venture company was formed.

Anglo American has agreed in principle to sell its 50% stake in the company to Lafarge for £885M.

Agreement to sell has been prompted by the proposed merger of Lafarge and the Swiss based cement and aggregate manufacturer Holcim, which could be completed early next year.

For the merger to go through, a series of 'asset disposals' are required by both Lafarge and Holcim across Europe and other parts of the world. These disposals include Lafarge Tarmac in the UK, with the possible exception of one cement plant.

A spokesman for Lafarge in France said: "Reaching an agreement in principle with Anglo American gives us room to manoeuvre in negotiations with third parties."

Lafarge Tarmac in the UK declined to make any further comment. A statement on its website says: "There will be no change in the way we work with you."

Lafarge Tarmac has nearly 6000 employees based at 270 sites.

The company is thought to have a 35% share of the road surfacing market in the UK and a 16% share of asphalt laid.

In April, Lafarge Tarmac started work on a £480M maintenance framework contract with Norfolk County Council and in January it launched a drive for low energy road building materials in association with the Carbon Trust.

To return to the newsletter, please close this window.