Summit Materials to merge with Cementos Argos's US operations in $3.2 bln deal (updated)
07/09/2023 13:03
(Adds agreement details from paragraph 2)
Sept 7 (Reuters) - Summit Materials SUM.N said on
Thursday it would merge with the U.S. operations of Cementos
Argos in a cash-and-stock transaction valued at $3.2 billion,
creating the fourth-largest cement platform in the United
States.
Cementos Argos will receive about $1.2 billion in cash,
subject to closing adjustments, and 54.7 million shares of
Summit based on its closing price on Wednesday.
Argos USA has assets comprising four integrated cement
plants, 140 ready-mix plants and eight ports, giving Summit a
"significantly improved scale" in high-growth markets.
Cementos Argos will own about 31% of the combined
company on upon the closing of the transaction.
(Reporting by Ananta Agarwal; Editing by Savio D'Souza and Maju
Samuel)
((Ananta.agarwal@thomsonreuters.com;))