Summit Materials Stock Rises Amid Reports of Nearing Acquisition by Quikrete

According to a report published Thursday afternoon, based on sources close to the matter, Quikrete, a leading producer of packaged concrete and cement mixtures in North America, is in the final stages of negotiations to acquire Summit Materials, a Denver-based supplier of construction materials such as ready-mix concrete and asphalt. Sources anticipate that if the current negotiations proceed without issues, an announcement regarding the deal could be made as early as next week.

Summit Materials' shares rose over 7% following the news. Prior to this news, Summit had disclosed that it received a non-binding acquisition offer in October and had engaged in preliminary discussions with an interested party, although no details were shared. Last month, Bloomberg reported that Quikrete had started talks regarding a potential deal with Summit.

The construction materials sector is experiencing a wave of deals, partly due to increased government spending on infrastructure projects across the U.S. and expectations for sustainable demand for construction materials. As a strategic move, Summit had indicated its intention to merge with Colombian concrete producer Cementos Argos' U.S. operations last year.

Quikrete's potential acquisition is seen as a strategic consolidation within the industry and could position the combined entity to capitalize on growing market demands. The financial terms of the deal have not been disclosed, and neither Quikrete nor Summit Materials has yet made an official statement regarding the acquisition.