New Zealand-based roadbuilder Fulton Hogan is set to buy a 50 per cent stake in New South Wales road contractor Stabilised Pavements of Australia (SPA), according to a report in the Australian Financial Review's "Street Talk".

Fulton Hogan's Australian management told staff on Friday the company was negotiating for the SPA stake, the paper said.

Staff were told the transaction would be formalised in the "near future".

SPA would retain its structure and branding but its 200-plus employees would become part of Fulton Hogan's wider business, AFR said.

The company's Facebook entry says it is focused on delivering pavement construction, rehabilitation and maintenance solutions.

Unlisted Fulton Hogan operates in New Zealand and Australia, employing 7700 people.

The company's corporate affairs spokespeople were not immediately available to comment to the Herald on the report.