Summit Materials Inc. and Cementos Argos' United States unit Argos North America Corp. will combine in a cash and stock transaction worth $3.2 billion. The companies said the merger will create the fourth-largest cement platform in the US with a presence in 30 states.
Under the terms of the deal, Cementos Argos will receive around $1.2 billion in cash and 54.7 million Summit shares. The transaction is expected to close in the first half of 2024. "This agreement enables Cementos Argos to fulfill its strategic goal of generating greater economic value for shareholders, Cementos Argos CEO Juan Esteban Calle said. "It aligns with the company's objective of holding a substantial stake in a NYSE-listed company and leverages a platform with a proven track record of growth, enabling substantial potential for future expansion and profitability."