plans to make an offer for the stake it doesn't already own in
Lafarge North America
, a deal that's valued at around $3 billion.
Paris-based Lafarge currently owns 53.2% of Lafarge North America and said it's proposing to buy the other 46.8% interest for $75 a share. The offer represents a premium of nearly 17% to Lafarge North America's closing stock price on Feb. 3.
"This transaction makes strategic sense for Lafarge, because it will enable us to pursue business and growth opportunities in North America even more effectively," Lafarge said in a press release Monday. "It makes operational sense, because it will streamline and accelerate decision-making, free of the complexity of operating through a partially owned, publicly traded subsidiary. And it makes financial sense, because it will enable us to improve the use of free cash flow at Group level and should be immediately accretive to our earnings per share.
Shares of Virginia-based Lafarge North America were jumping $17.61, or 27.4%, to $81.86 on the news. Lafarge, which trades American depositary shares in the U.S., was up 96 cents, or 3.7%, at $26.75.