Martin Marietta Materials Inc. agreed to buy cement maker Texas Industries Inc. in an all-stock transaction valued at $2.7 billion to tap into a construction rebound in California and Texas, the most-populous U.S. states.

Texas Industries stockholders will receive 0.7 Martin Marietta share for each share of Texas Industries. Based on yesterday’s closing stock price for Martin Marietta, the deal would value Texas Industries at $71.95 a share, according to a statement.

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