Breedon and Lagan subsidiary Whitemountain already operate a joint venture in asphalt supplying the £745m Aberdeen Western Peripheral Route.

The two companies are currently exploring a significant deepening of relationships.

If agreed, it would be another significant deal for executive chairman Peter Tom, who has spent the last decade since leaving Aggregate Industries building up the business into the UK’s largest independent heavyside materials supplier, including the £335m purchase of Hope Construction Materials.

In a statement this morning the Aim-listed materials group said: “Breedon notes that it regularly engages with companies in its sector and it can confirm that it is in discussions with Lagan and its major shareholders in connection with a possible acquisition of a substantial part of the Lagan business.

“There can be no certainty that the possible acquisition will proceed, nor as to the terms of the possible acquisition.  A further announcement will be made as appropriate.”

The Lagan Group is a diversified construction business covering quarrying, cement, asphalt and contracting. Most recently the business controlled by Kevin Lagan, 68, also moved into house building in England.