Following on from the revelation that Lafarge may be selling its Calera, Citadel & Lakeshore aggregates operations to Vulcan Materials, it appears that Lafarge may also be selling aggregates, concrete and asphalt assets in Colorado (Front Range) to Martin Marietta.
Another source that wishes to remain anonymous, has posted a message on aggregateRESEARCH.com that this transaction is imminent. (Have your say to determine the validity of this statement – http://www.aggregateresearch.com/rumors/industryrumor.aspx?rumorid=83.)
Further to the sale of these assets, a sale/swap of Vulcan Materials aggregate assets in New Mexico to Lafarge appears to be on the cards. Our source concludes that this transaction forms part of a swap that was detailed yesterday on this website.
Consolidation of the Construction Materials industry has been tipped by industry analysts for some time, citing depressed markets and valuations.
Waiting in the wings for bargain deals are companies like Votorantim. An industry expert is also picking one of the Chinese Construction Materials companies to start acquisition activity in Western markets, especially with lame duck companies like Cemex trading at historic lows, and being burdened with unsustainable debt.