(Reuters) - U.S. gravel maker Martin Marietta Materials Inc (MLM.N) will look to make a friendly offer to buy rival Vulcan Materials Co (VMC.N), rather than attempt another hostile takeover, the Wall Street Journal reported, citing people close to the decision.
Vulcan rejected Martin Marietta’s unsolicited bid of almost $5 billion last year, saying it undervalued the company.
Martin Marietta has not yet approached Vulcan, but is still interested in a deal, the Journal said.
Last year, Martin Marietta offered half of one of its shares for each Vulcan share, in a bid to form the world’s largest construction aggregates producer.
The construction industry has been hurt in recent years by the U.S. housing downturn, but has started to recover, with Marietta posting quarterly results above market expectations last month.
Both companies declined to comment to the Journal, and could not immediately be reached for comment by Reuters.
Reporting by Tej Sapru in Bangalore; Editing by Daniel Magnowski