Summit Materials and Cementos Argos Receive Approval for Merger
In a significant move in the cement industry, Summit Materials and Cementos Argos have obtained shareholder approval for their merger, set to create the fourth-largest cement company in the United States.
On January 11, a shareholders' meeting in California, United States, marked a pivotal moment for Summit Materials and Cementos Argos as they received approval for their merger. This business deal, first announced in September, is expected to result in the formation of a new entity in the US.
The companies had previously announced that the agreement would be finalized by the first quarter of 2024. With the recent approval, the merger process is now gaining momentum. Summit Materials announced that during the Extraordinary Assembly, 98.8% of the votes cast were in favor of approving the proposal to issue 54.72 million Class A ordinary shares of Summit, with a nominal value of $0.01 per share, to Cementos Argos and its subsidiaries.
Additionally, approximately 99.4% of the votes cast in today's Shareholders' Meeting were in favor of approving a proposal to issue "one share of Summit's preferred stock, with a nominal value of $0.01 per share, to Cementos Argos upon the closing of the transactions contemplated in the Transaction Agreement."
This merger will position the combined entity as the fourth-largest cement company in the US, with an estimated valuation of $9 billion. Cementos Argos will hold a 32% stake in the new company and receive $1.2 billion in cash, which is expected to help alleviate the company's liabilities.
Source:
La República
