ArcelorMittal chief to bid for Lafarge/Tarmac assets, UK - report

ArcelorMittal chief to bid for Lafarge/Tarmac assets, UK - report
Published: 10 October 2012

Chairman and CEO of global steel giant ArcelorMittal, Laskshmi Mittal, is reportedly bidding for assets put up for sale by Anglo American and Lafarge UK, according to reports by Sky News.

Mr Mittal, whose wealth was estimated at £12.7bn, is said to be bidding for the assets which have been ordered to be sold by the UK’s Competition Commission as a pre-condition for the completion of the Tarmac (Anglo’s UK business) and Lafarge UK merger.

In a statement in May, the Competition Commission said it wanted to see the asset portfolio sold to a single buyer in order to avoid a diminution of competition in an important industrial market. "A large-scale disposal like this is the only way to get a new entrant of sufficient scale to break into the UK cement market and thereby ensure that this joint venture does not damage competition. In bulk cement, there are currently only four UK producers and there is evidence that competition is not as effective as it could be," said Roger Witcomb, chairman of the Anglo/Lafarge inquiry group.

Mr Mittal, Britain's richest man, is said to be bidding through one of his private ventures rather than through ArcelorMittal. Sky News reported that it is unclear whether Mr Mittal is interested in all of the assets being sold or whether he will look to join forces with another bidder.