Irish construction giant CRH is part of a consortium in advance talks to buy Nordic firm NCC AB.
CRH and Heidelberg Materials, two of the world’s biggest building materials companies, along with Bouygues SA’s Colas unit are part of the potential buyer group for NCC’s industry business, which could be valued at more than $800m in a deal, sources said. NCC and the consortium are finalising details of a transaction and an announcement could come in the coming weeks.
The consortium could split up the NCC industry business in several geographies once a transaction is agreed. Deliberations are ongoing and could still be delayed or fall apart, they said. Representatives for all the companies declined to comment.
NCC last year announced a strategic review of the industry business that makes aggregates, asphalt, and asphalt paving, which accounts for about 20% of the firm’s total sales. SEB Corporate Finance is advising on the potential divestment. Bloomberg News reported in September that CRH, Heidelberg Materials, and Bouygues’ Colas were among suitors separately bidding for the business.
A sale of the industry business would leave NCC focused on an infrastructure business that builds tunnels, bridges, and roads, two units that build everything from residential buildings to offices and schools, as well as a commercial development arm. NCC, which is based in Solna near Stockholm, operates in Sweden, Denmark, Norway, and Finland.
In January, NCC agreed to sell its Escode business to TDR Capital for an enterprise value of £275m (€317m).
Shares of NCC have gained about 27% in the past year, valuing the company at about €2.19bn.
Bloomberg
