Why U.S. Concrete Stock Popped 30% Monday
Shares of concrete and construction materials company U.S. Concrete (NASDAQ: USCR) shot higher Monday after it announced it was being acquired by Vulcan Materials (NYSE: VMC) for $74 per share in cash -- a 30% premium over Friday's closing price. Shares immediately jumped to about that level, and remained up by 29% as of 11:30 a.m. EDT.
The purchase by its larger peer and supplier represents an equity value of almost $1.3 billion. The transaction, which has been approved by both boards of directors, is expected to close in the second half of the year. Demand for construction materials has been strong as the recovery progresses, with building activity accelerating in areas like data centers and warehouses.
Source Fool.com
