Hanson to Buy U.S. Timber Company

The British conglomerate Hanson PLC said Tuesday it had agreed to swap its 49% stake in Newmont Mining Corp. for control of a major U.S. timber company.

Hanson said it agreed to buy General Oriental Securities Ltd. and Hornwood Barbados Ltd. of the United States for $1.3 billion in cash and notes.

Together, the two companies own 99.5% of Cavenham Forest Industries. Darien, Conn.-based Cavenham owns or controls about 1.7 million acres of U.S. timberland in the West and South.

Hanson said it would sell its 49% stake in Newmont Mining Corp. of the United States to the owners of General Oriental and Hornwood for $1.1 billion in cash and $189 million in notes. The remaining 51% stake in Newmont is publicly held.

In July, Hanson paid $1.2 billion for full control of Peabody Holding Co., the United States’ biggest coal producer.