Argos N.A and Summit Materials Merge in a Cash/Stock Deal Valued at $3.2 Billion

Cementos Argos announced last week that it will be merging is North American operation with Summit Materials Inc in a cash/stock transaction valued at $3.2 Billion. This deal is announced at a time when building materials are trading at record highs post pandemic. High material cost comes from a high demand and low supply available on the market today.

Cementos Argos will be taking a 31% ownership stake in Summit bringing more value for shareholders. This deal will expose Argos products to more outlets here in North America enabling expansion and potential for future profitability in North American markets for the Colombian based corporation. Summit Materials is a leading vertically integrated materials-based company in the United States, British Columbian, and Canadian markets. Summit has strategic upstream and downstream operations within North America that provides opportunity for Argos.

More building materials and construction supplies added to the markets could jumpstart new opportunities for construction companies and contractors. Summit Materials Inc (SUM) traded 8% below its yearly high as both companies will continue to operate independently until necessary legal and regulatory approvals are met. Let's see how the 🎲 roll.