CRH and Heidelberg Materials, two of the world’s biggest building materials companies, are among suitors for a business being sold by Nordic construction firm NCC, according to people familiar with the matter.

NCC’s industry business – which makes aggregates, asphalt and asphalt paving – has also attracted interest from Bouygues’s Colas unit as well as several private equity firms, the people said.

NCC announced a strategic review of the business in February and hired SEB Corporate Finance to advise on a potential divestment, which is now heading into the next round of bidding.

The unit, which accounts for about 20 per cent of NCC’s sales, could fetch as much as $1 billion in a transaction, some of the people said, asking not to be identified because talks are private.

Deliberations are ongoing and the suitors could decide against proceeding with their bids, the people said. NCC could also opt to keep the business for longer, they added. A representative for NCC said the company is still hoping to reach a conclusion of the strategic review before the end of the year, declining to comment on the bidders. Representatives for CRH, Colas and Heidelberg Materials also declined to comment.

NCC Industry had an operating profit of 584 million Swedish krona (€53 million) on net sales of 12.6 billion krona in 2024, with an operating margin of 4.6 per cent, according to company statements.

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.

Shares of NCC have gained about 16 per cent this year, valuing the company at about $2 billion. – Bloomberg