CRH reportedly vying for a division of Sweden's NCC, as potential buyers emerge
In a significant development, the industry business of NCC, a leading construction company operating in Sweden, Denmark, Norway, and Finland, is attracting attention from several major players.
The strategic review of NCC's industry business, which was announced in February, has led to ongoing deliberations regarding a potential sale. Bouygues's Colas unit, CRH, Heidelberg Materials, and several private equity firms are among the suitors interested in acquiring NCC's industry business.
The industry business, which specialises in making aggregates, asphalt, and asphalt paving, could fetch as much as $1 billion in a transaction. This business unit accounts for about 20% of NCC's sales, with net sales amounting to 12.6 billion Swedish krona in 2024. The operating profit for the same year stood at 584 million Swedish krona (€53 million), while the operating margin was 4.6%.
SEB Corporate Finance has been hired to advise on a potential divestment of NCC's industry business. However, the information about the potential transaction remains private, and people familiar with the matter asked not to be identified.
The next round of bidding for NCC's industry business is ongoing, but the suitors may decide against proceeding with their bids. It is also possible that NCC could opt to keep the industry business for longer.
Shares of NCC have gained about 16% this year, valuing the company at about $2 billion. A sale of NCC's industry business would leave the company focused on infrastructure, construction, and commercial development.
The news of the potential sale has generated interest, but the search results contain no information about potential buyers being considered for NCC's industrial business at this time. The ongoing deliberations are expected to provide more clarity in the coming weeks.
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