Raleigh-based Martin Marietta wants to merge with its main competitor. What started out as a private negotiation is now a hostile takeover.
Martin Marietta wants to merge with Birmingham, Alabama-based Vulcan Materials. The two companies are the U-S leaders in the production of rock, gravel, sand and other building materials. Ward Nye is the C-E-O of Martin Marietta.
Ward Nye: "As is well know, these last few years have been challenging for our industry given economic recession and reduction in infrastructure, commercial and residential construction projects."
Martin Marietta has been in private merger talks with Vulcan for more than a year. But after negotiations broke down – Nye says Martin Marietta decided to take their 4-point-7 billion dollar stock offer straight to Vulcan’s shareholders. Vulcan is bigger, with more production facilities and thousands more workers. But Martin Marietta’s stock has out-performed Vulcan’s in recent years.