Cement silos of Colombian cement maker Argos are pictured at a plant in Bogota, Colombia May 14, 2019.
REUTERS/Luisa Gonzalez Acquire Licensing RightsSept 7 (Reuters) - Summit Materials (SUM.N) said on Thursday it would buy the U.S. operations of Columbia's Cementos Argos (CCB.CN) for about $3.2 billion in cash and stock, in a deal that would make the combined entity the largest U.S.-based cement producer.
Cementos Argos, the core unit of industrial conglomerate Grupo Argos (ARG.CN), will own a 31% stake in Summit and receive $1.2 billion in cash payments, subject to certain conditions.
The deal, which is expected to close in the first half of 2024, could lead to annual cost savings of more than $100 million, Summit said.
Shares of Summit Materials fell 7.92% in mid-day trading.
Persons:
Luisa Gonzalez, Columbia's Cementos, Argos, Summit, Anne Noonan, Morgan Stanley, Ananta Agarwal, Savio D'Souza, Maju Samuel, Shweta Agarwal
Organizations:
REUTERS, Grupo Argos, Summit, BofA Securities, Thomson
Locations:
Argos, Bogota, Colombia, U.S, Mid, Atlantic, Texas, Summit