Summit Materials, a construction materials company, saw its stock price decrease by 9.2% after it announced a merger with the U.S. operations of Cementos Argos, a cement maker. The merger between Summit and Argos North America, also known as Argos USA, will create the fourth-largest cement maker in the United States. Summit will pay Cementos Argos $1.2 billion in cash and issue approximately 54.7 million shares of its stock. After the transaction is completed, Cementos Argos will own approximately 31% of the combined company. This merger has the potential to strengthen both Summit and Cementos Argos’ positions in the U.S. construction materials market, allowing for strategic cost savings and further growth opportunities.

Source: Wall Street Journal September 07, 2023 16:00 UTC