Carlisle, a building-products firm primarily focused on the commercial sector, has submitted several offers over the past few months using a mix of cash and stock at a significant premium to current market valuations. Owens Corning, which dominates the residential market, has yet to engage in substantive negotiations regarding these proposals. According to people familiar with the matter, Carlisle leadership is currently evaluating its next strategic step.

Market analysts note that a merger could provide a hedge against the cyclical nature of the construction industry, balancing Owens Corning’s residential exposure with Carlisle’s commercial footprint. While Owens Corning shares have climbed 31% year-to-date, Carlisle’s own stock retreated 5.2% to $368.28 in afternoon trading as investors digested the news of the aggressive pursuit.