Summit Materials, a U.S. construction firm set up by former CRH executives, has made a rival offer for Ash Grove Cement, which CRH has agreed to pay $3.5 billion for, a source said.
Overland Park, Kansas-based Ash Grove said on Friday it had received a bid valued at $3.7 billion to $3.8 billion which it expects to result in a better offer to the deal struck last month with CRH, the world’s third-largest building materials supplier.
A source familiar with the matter said the unnamed bidder was Summit, which could not be reached for comment, and it had submitted its bid on Thursday. The offer is being considered by Ash Grove’s board, the source added.
Ireland’s CRH said that its proposal remains in place, subject to approval from Ash Grove shareholders.
Ash Grove has set a meeting on Nov. 1 for shareholders to vote on the agreement with CRH, which its board unanimously approved last month, but has extended its go-shop period during which it can look for other potential buyers to Oct. 20, the cement company said in a statement.