Bloomberg: Martin Marietta In Advanced Talks To Acquire Texas Industries

(RTTNews) - Construction materials maker Martin Marietta Materials, Inc. (MLM) is in advanced talks to acquire smaller peer Texas Industries, Inc. (TXI), according to a Bloomberg report on Friday. Texas currently has a market capitalization of $2.15 billion. A deal is expected to be announced as early as next week.

Martin Marietta Materials is the nation's second largest producer of sand, gravel and crushed rock used in construction, while Texas Industries is focused on heavy construction materials and produces cement, aggregates, and concrete. Reports in mid-December had revealed the owners of Dallas, Texas-based Texas Industries were exploring a sale of the company and were working with Citigroup, Inc. (C) to find a buyer.

Texas Industries' largest shareholders, Southeastern Asset Management, Inc. and NNS Holding, have been reportedly seeking to sell their stakes in the company for some time. Combined, the two investors reportedly own more than 51 percent of the company. NNS is an investment vehicle of Egyptian billionaire Nassef Sawiris.

Texas Instruments has the capacity to make 6 million tons of cement per year and expects to grow it to almost 8 million tons over the next several years.

Meanwhile, Texas Industries reported in early January reported a wider loss for the second quarter, despite net sales growth, reflecting primarily higher interest expense.

Texas Industries' net loss for the quarter widened to $17.64 million or $0.62 per share from $11.12 million or $0.40 per share in the prior-year quarter. Net sales for the quarter increased to $208.89 million from $167.69 million in the same quarter last year.

MLM closed Friday's regular trading session at $104.32, down $4.85 or 4.44% on a volume of 2.85 million shares, while TXI closed at $75.06, up $6.37 or 9.27% on a volume of 1.35 million shares.