(Bloomberg) -- Blackstone Inc. is in talks about a potential merger of its European building materials retailer with a similar business owned by CVC Capital Partners, people with knowledge of the matter said. 

New York-based Blackstone is discussing a possible combination of the business, known as Building Materials Europe BV, with CVC’s Stark Group A/S, the people said. It has also been studying other potential partners alongside concurrent preparations for a listing of BME, they said, asking not to be identified because the information is private. 

Exploratory talks on a potential merger have taken on increased importance, as the recent market turmoil makes it more difficult for BME to pursue an initial public offering, according to the people. Blackstone is seeking to value the business at about 6 billion euros ($6.9 billion) in any deal, the people said. 

Deliberations are ongoing, and there’s no certainty that Blackstone and CVC will reach an agreement on terms of a deal, the people said. Blackstone could still go ahead with an IPO or hold onto the business for longer, the people said.

Representatives for Blackstone and CVC declined to comment.  

Stark, which traces its roots to a small timber yard in late 19th-century Denmark, sells and distributes building materials to tradespeople in northern Europe. The company, which CVC bought last year from Lone Star Funds, employs 11,700 people in nearly 500 branches, according to its website. 

BME distributes products like bricks, timber and insulation for the construction industry. It also sells bathroom, heating and plumbing supplies used by professional contractors and runs stores catering to home renovators. 

The company, headquartered in the Netherlands, has about 800 locations across Europe under brands including BMB, Bouwmaat, Raboni and Bauking, according to its website. Blackstone agreed to buy BME from CRH Plc in July 2019 for 1.64 billion euros and has since grown the business through acquisitions. 

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