Ash Grove Cement (ASHG), which last month agreed to be taken over by Irish building materials company CRH (CRH, CRG.IR) said it received a rival takeover offer with an indicated enterprise value of $3.7 billion to $3.8 billion that tops CRH’s bid.
Ash Grove agreed to the takeover by CRH on Sept. 21 for $3.5 billion. The new offer from the unidentified investor is preliminary and non-binding, the company said late Thursday, adding that it will engage in talks with the suitor. Reuters named the rival as Summit Materials.
“The board of directors of Ash Grove has determined that such proposal could reasonably be expected to result in a superior proposal and has determined to engage with such third party,” Ash Grove said. The company also said there can be no assurance an offer will be actually made and, even if there is a bid, there’s no guarantee the board will deem it superior to the CRH proposal.
Ash Grove also extended the “window shop” period before approval from its shareholders can be sought to Oct. 20.
CRH said in a statement on Friday that its proposed transaction remains subject to Ash Grove shareholder and regulatory approvals and that it noted Ash Grove’s announcement on Thursday “in particular that the period for obtaining Ash Grove shareholder approval has been extended.”