The Lagan Group is a diversified construction business covering quarrying, cement, asphalt and contracting.

With annual turnover of more than £350 million and more than 1,000 employees, it is one of the largest privately owned companies in Ireland.

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

Breedon said it was holding discussions with Lagan Group and its major shareholders over the possible acquisition of “all or a significant part” of the business.

In a statement to the London Stock Exchange (LSE) this morning, it 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.”

Over the last few years Breedon has been on an acquisition drive which has saw the firm purchase ready-mix concrete supplier Huntsman’s Quarries for £15m in 2014, Hope Construction Materials for £336m in 2015 and buildings material business Sherburn Minerals Group for £15.7m in November 2016.