Martin Marietta Materials has agreed to acquire Texas Industries in an all stock deal worth more than $2 billion, according to people familiar with the matter.
The deal will see Martin Marietta exchange seven-tenths of one of its shares, worth about $72, for each Texas Instrument share. A deal is expected to be announced shortly.
Martin Marietta is a big producer of sand and gravel, and acquiring Texas Industries, a construction supplies company, will expand its range of offerings.
The two companies began merger talks last year but couldn’t agree on a deal. Talks restarted recently, and proceeded over the weekend.
Shares of Martin Marietta, which has a market value of about $4.8 billion, were down 4.4 percent on news of the potential acquisition, suggesting some investor skepticism for such a deal.
Martin Marietta shares were down 1.5 percent on Monday after falling more than 4 percent on Friday.
The deal will be significant for the two shareholders that control more than 50 percent of Texas Industries’ stock. Southeastern Asset Management, the money manager that opposed the Dell buyout, owns about 28 percent of shares, and NNS, a group controlled by Egyptian billionaire Nassef Sawiris, owns 23 per cent.
Acquiring Texas Industries will allow Martin Marietta to move past its failed bid for rival Vulcan Materials two years ago. That deal led to a messy legal dispute, but since then Martin Marietta shares have risen steadily.
