Colombian Grupo Argos proposes merger of cement unit with Summit Materials

Grupo Argos, a Colombian industrial conglomerate that covers energy and construction materials, approached US cement manufacturer Summit Materials Inc for a merger, people familiar with the matter said Thursday.

Such an agreement would reinforce the presence of Grupo Argos in the United States and illustrate how construction materials companies in emerging markets seek to impose themselves in more mature economies.

Grupo Argos sees value in the combination of Cementos Argos SA, one of its subsidiaries, with Summit Materials, the sources said. However, there is no certainty that the US company will negotiate an agreement, they added.

The sources asked not to be identified because the matter is confidential. Grupo Argos and Summit Materials did not respond immediately to requests for comments.

Argos, controlled 35.4% by the GrupoSURA holding, announced in March that it will invest some 2.6 trillion pesos (US $795 million) this year in its power, concessions and cement subsidiaries.

After hearing this news, the action of Summit Materials rose about 16.8% on the New York Stock Exchange.

Sign Up for Our Newsletters

You May Also Like

Consortium led by French Engie seals purchase of Petrobras unit for US $ 8.6 billion

A consortium led by French power company Engie won the bid to…

Mexicana Cinépolis seeks to expand its operations to the Middle East

For Cinépolis, the challenges of its arrival in the Middle East go…

China’s Shandong Gold Mine seeks to invest in Peru

One of the world’s largest mineral producers, China’s Shandong Gold Group, is…

Peru, Bolivia, Colombia, and Mexico, improve economic climate to do business in Latin America

Peru is one of the four countries in Latin America that have…