Irish building materials company CRH has agreed a deal to buy Lafarge Tarmac as part of an asset sale ahead of the £26bn merger between Lafarge and Holcim.
CRH will purchase UK-based Lafarge Tarmac along with several other assets for a total of £4.88bn.
The sale will not include the Cauldon cement plant in Staffordshire and “certain associated assets”, according to a joint statement from Lafarge and Holcim.
As well as Lafarge Tarmac, CRH will acquire Holcim and Lafarge assets in Germany, Slovakia, Serbia, Romania, France and Hungary.
Outside of Europe, CRH will also acquire production facilities and assets in the US, Canada, Brazil and the Philippines as part of the deal.
Taken together, the assets being disposed as part of the deal generated an estimated £3.82bn of sales in 2014.
The decision to clear the Holcim and Lafarge merger last year was subject to a commitment from both groups that the entire Lafarge Tarmac business, except its Cauldon plant, would be divested to a company not currently involved in cement production within the UK.
Holcim and Lafarge’s merger is expected to be completed in the first quarter of 2015.
Commenting on the deal, LafargeHolcim board chairman Wolfgang Reitzle said: “The projected transaction is a key step towards the creation of LafargeHolcim and the value offered reflects the strong quality of the selected assets.
“This successful outcome demonstrates the quality of the collaborative work undertaken by Holcim and Lafarge teams.
“With this announcement, we remain firmly on track to complete our proposed merger in the first half of 2015.”