(Bloomberg) -- Quikrete Holdings Inc. has approached Summit Materials Inc. about a potential takeover, people familiar with the matter said.
The privately held building materials maker is working with advisers as it pursues a bid for Denver-based Summit, the people said, asking not to be identified discussing confidential information.
Shares in Summit rose as much as 13% in on Thursday. The stock was up 7.6% at 3:13 p.m. in New York, giving the company a market value of about $7.7 billion.
Deliberations are ongoing and there’s no certainty they’ll result in a deal, the people said. Representatives for Quikrete and Summit couldn’t immediately be reached for comment.
Any deal for Summit would come little more than a year after the company agreed to merge with the US operation of Colombian concrete maker Cementos Argos in a $3.2 billion deal. Soon after, Bloomberg News reported that Summit had been the subject of a takeover approach from Heidelberg Materials AG.
The value of deals in the building materials sector is up by more than a third this year at $59 billion, data compiled by Bloomberg show, fueled by transactions including Owens Corning’s agreement to buy doormaker Masonite International Corp. for $3.9 billion.
(Adds shares in third paragraph, detail on Summit deal in penultimate paragraph.)
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