UK: The UK Competition Commission (CC) has announced that Anglo American plc (via UK subsidiary Tarmac) and Lafarge will have to sell a significant portfolio of operations, paving the way for entry by a new competitor into the UK cement market, before their proposed construction materials joint venture can go ahead.

In February 2012, the CC provisionally ruled that the proposed joint venture between Anglo American and Lafarge could damage competition in certain markets for construction materials. In its final report, the CC has reiterated its concern that the joint venture would increase the danger of coordination in the market for bulk cement and would reduce competition in local and national markets for other products including aggregates, asphalt and ready-mix concrete.

Anglo American and Lafarge will now be required to sell an extensive package of operations including:

• Lafarge's cement plant in Hope, Derbyshire as well as the nearby Dowlow quarry and three linked rail depots.

• A substantial network of readymix concrete plants, representing well over half of the proposed joint venture's readymix concrete capacity.

• Six aggregate quarries as well as Tarmac's share of two quarries owned through its Midlands Quarry Products joint venture with Hanson and one rail

depot.

• Two asphalt plants as well as Tarmac's share of five plants owned through Midlands Quarry Products joint venture.

The CC further stated that the sale would have to be completed before the joint venture would be allowed to proceed.