George Wimpey pic and Tarmac pic has announced that they are to enter into an agreement that will see both companies undergo major re-structuring, resulting in each company returning to its roots. At present, the two companies are conducting due diligence. The deal is expected to be finalised towards the end of January 1996, at which time Wimpey will acquire the Housing Division of Tarmac, in exchange for Wimpey's Mineralsftmd Construction Divisions. From Wimpey's point of view, the rational behind the deal is that hitherto, its three divisions -- Construction, Minerals and Homes & Land Development -- have represented a mixture of short term trading activities (such as homes and construction), combined with long term asset investment activities, ie. the Minerals Division.
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