ITM Italmobiliare Spa

Germany's HeidelbergCement AG and Italian rival Italcementi SpA are discussing a combination, according to people familiar with the matter, in a deal that would further consolidate Europe's building-materials industry.

Italcementi had a market value Tuesday of €2.3 billion ($2.5 billion), meaning that, with a typical takeover premium, a tie-up could value it at more than $3 billion should the company be bought out in full. Details of the combination the companies are discussing couldn't be learned.

HeidelbergCement had a market capitalization of €13.3 billion.

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