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Summit Materials makes $3.8 billion bid for Ash Grove Cement: source

Published 10/06/2017, 07:19 AM
Updated 10/06/2017, 07:30 AM
© Reuters. Hill, CEO of cement maker Summit Materials Inc., claps before the company's IPO on the floor of the New York Stock Exchange
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LONDON (Reuters) - U.S. cement maker Summit Materials (N:SUM) has made a $3.8 billion offer for rival Ash Grove Cement (PK:ASHG), a source familiar with the matter told Reuters, hoping to trump an earlier takeover bid from Irish building materials firm CRH Plc (I:CRH).

Ash Grove said earlier on Friday that it had received a new bid from an unnamed party which valued the business at $3.7-$3.8 billion.

The source said Summit Materials' bid was submitted on Thursday and is currently being considered by Ash Grove's board.

© Reuters. Hill, CEO of cement maker Summit Materials Inc., claps before the company's IPO on the floor of the New York Stock Exchange

It could be the start of a bidding war with CRH, which last month agreed to buy Ash Grove for a total consideration of $3.5 billion.

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