Martin Marietta And Vulcan Materials' Unfriendly Merger
By Robert Broens: Martin Marietta Materials (MLM) announced the intention to merge their operations with Vulcan Materials (VMC). The combined combination would become the global leader in construction aggregatives, with a combined market capitalization of $7.7 billion as of Friday's close.
It is clear that Martin Marietta is leading this merger attempt. A year and a half ago, talks between both parties started, which recently collapsed. Still, Ward Nye, CEO of Martin Marietta, thinks the deal makes so much sense that he is preparing to make a hostile bid by directly making a proposal to Vulcan's shareholders. Martin Marietta is the smaller company, with sales of $1.8 billion last year, on which it earned $100 million. It pays a 2% dividend yield and trades at 2.4X book value. Vulcan Materials is much bigger than Marietta, with $2.6 billion in sales. However, its efficiency is lacking, and it lost $100 million lastComplete Story »