Update 29 January 2014
US: US construction materials giant Martin Marietta has agreed to purchase Texas Industries (TXI), which has 6Mt/yr of cement capacity and a raft of ready mix concrete facilities in Texas and California, for US$2.7bn.
Martin Marietta's chief executive, C Howard Nye, said, "We like the Texas market a lot. This augments the position we have in Dallas - Fort Worth. The Texas market, for the long term, is one of the most dynamic in the country."
Original story
US: Construction materials maker Martin Marietta Materials is in advanced talks to acquire Texas Industries. Texas Industries currently has a market capitalisation of US$2.15bn. A deal is expected as early as February 2014.
Reports in mid-December 2013 revealed that the owners of Texas Industries were exploring a sale of the company and were working with Citigroup to find a buyer. Texas Industries' largest shareholders, Southeastern Asset Management and NNS Holding, have been seeking to sell their stakes in the company for some time. Combined, the two investors own more than 51% of the company.
Texas Industries has a 6Mt/yr cement production capacity that is expected to grow to almost 8Mt/yr in the next few years. The company reported a second quarter net loss of US$17.6m in January 2014, despite a growth in net sales from US$168m in the second quarter of 2013 to US$209 for the same period of 2014. The net loss was blamed on higher interest expenses.
