Summit Materials to combine with Cementos Argos' U.S. business in a cash and stock deal valued at about $3.2 billion

Shares of Summit Materials Inc. (SUM) rallied 2.4% in premarket trading Thursday, after the cement maker announced an agreement to combine with Argos North America Corp. (Argos USA), the U.S. operations of Colombia-based Cementos Argos S.A. in a cash and stock deal valued at about $3.2 billion. Under terms of the deal, Summit will pay Cementos Argos $1.2 billion in cash and 54.7 million of its shares, which based on Wednesday's closing price of $36.00 would be valued at about $1.97 billion. The company targets synergies of more than $100 million a year from the combination. "The transaction will extend our geographic reach into high growth markets, creating a leading cement enterprise nationwide, and bring together two talent-rich organizations to innovate and deliver value-added solutions for our customers," Summit Chief Executive Anne Noonan said. Summit's stock has run up 26.8% year to date through Wednesday, while the S&P 500 has advanced 16.3%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-07-23 0739ET

Copyright (c) 2023 Dow Jones & Company, Inc.