NEW YORK, Oct 24 (Reuters) - Building materials provider

Quikrete has approached rival Summit Materials ( SUM ), which

has a market value of more than $7 billion, with an acquisition

offer, people familiar with the matter said on Thursday.

Quikrete, which is privately held, is working with its

advisers on the bid for Summit Materials ( SUM ) and the talks are at an

early stage, the sources said, requesting anonymity as the

discussions are confidential.

Summit Materials ( SUM ) trades at a discount to peers like Vulcan

Materials ( VMC ) and Martin Marietta Materials ( MLM ), making

it an attractive acquisition target.

Summit Materials ( SUM ) on Thursday said that it had received a

non-binding acquisition proposal and was in initial discussions,

without disclosing any further details.

The board will carefully evaluate the offer, it said in the

statement, adding there was no assurance of a definitive

agreement.

Quikrete did not immediately respond to a request for

comment.

The talks come as increased U.S. government spending on

infrastructure has boosted prospects for suppliers of building

products.

Miter Brands, which is backed by Koch Industries, this year

agreed to buy PGT Innovations, a U.S. maker of vinyl and

aluminum doors and windows, for $3.1 billion, including debt.

Founded in 1940, Atlanta, Georgia-based Quikrete is one of

the biggest manufacturers of packaged concrete and cement mixes

in North America.

Denver, Colorado-based Summit Materials ( SUM ) is a provider of

construction materials such as cement, ready-mix concrete, and

asphalt and also offers services such as construction and

paving. Last year, Summit struck a $3.2 billion deal to merge

with the U.S. business of Colombia-based building materials

company Cementos Argos.

Both Quikrete and Summit Materials ( SUM ) operate in the U.S. and

Canada.

Summit Materials ( SUM ) shares closed up more than 6% on Thursday

after Bloomberg reported on the talks.