Grupo Argos interested in Summit Materials merger

Grupo Argos has approached US aggregates and cement producer Summit Materials Inc about a merger, according to people familiar with the matter.

The deal would expand Grupo Argos’ footprint, but it remains uncertain whether Summit Materials would be prepared to negotiate a deal with Argos, said Reuters.

The news saw shares of Summit increase by 14 per cent to US$15.51, resulting in a US$1.8bn market capitalisation for the US company. However, as at the end of March, it had accumulated US$1.9bn. Summit Materials produces cement, which it delivers along the Mississippi, as well as  aggregates, which it supplies across the US and in British Columbia, Canada.