China Communications Construction Company (CCCC) is in late-stage talks to acquire John Holland, a subsidiary of Australian builder Leighton Holdings.
The firm has a total value estimated at A$1 billion.
Leighton Holdings acquired a 70 percent shareholding in John Holland in February 2000, which increased to 100% in 2007.
Leighton Holdings's assets are being put up for sale as part of a new value creation strategy of the firm, following a takeover bid this year by Hochtief. Leighton Holdings's 70% owner Hochtief took over the Australian company's management in March with a view to streamlining its myriad businesses, slashing costs and increasing profitability. Hochtief is controlled by Spain's ACS Group.