© Reuters. FILE PHOTO: Cement silos of Colombian cement maker Argos are pictured at a plant in Bogota, Colombia May 14, 2019. REUTERS/Luisa Gonzalez
(Reuters) -Summit Materials 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.
This story originally appeared on Investing
