UPDATE 1-CVC in exclusive talks for Sweden's Ahlsell-sources

* CVC picked ahead of rivals BC Partners, Bain, Nordic Capital -sources

* Staple financing package from Goldman Sachs and Nordea -sources

* Tools group could fetch 1.8 billion euros for Cinven and Goldman Sachs

By Simon Meads and Sven Nordenstam

LONDON/STOCKHOLM, Jan 30 (Reuters) - Private equity group CVC is in exclusive talks to buy Ahlsell, Sweden's largest supplier of tools and building materials, in what could be the biggest European buyout since M&A markets collapsed last summer, people familiar with the situation said.

The Nordic markets continue to be a bright spot for private equity activity while dealmaking has slumped across the rest of Europe as concerns about the crisis in the euro zone have cut access to debt financing.

CVC has been picked ahead of rival buyout groups BC Partners, Bain Capital and Nordic Capital in a discreet sale process for a limited field of prospective bidders, four people familiar with the situation said.

Sellers Cinven and Goldman Sachs Capital Partners had asked the rival private equity groups to table bids a couple of weeks ago, and had been seeking some 16 billion Swedish Crowns ($2.4 billion)for the business they bought in 2005 for about 1.2 billion euros ($1.6 bln).

That would make it the largest buyout in Europe since BC Partners agreed to buy Swedish cable group Com Hem for a similar price in July last year, and a sign that strong financing appetite from the local banks is helping the region outperform.

CVC has entered into a four-week exclusivity period in which to try and secure a deal, one of the people said.

Cinven and Goldman Sachs declined to comment. CVC was not immediately available for comment.

Ahlsell is the leading distributor of electrical, refrigeration and heating and plumbing products to trade and DIY enthusiasts in the region, with more than 230 stores in Sweden, Norway, Finland, Denmark, Estonia and Russia.

It employs some 4,500 people and had sales of 14.7 billion crowns in the first nine months of 2011, up 5 pct on the previous year, according to the company's website.

In 2010, Ahlsell had sales in excess of 19 bln crowns.

A so-called "staple" financing package from Goldman Sachs and Nordea has been made available to the bidders, some of the sources said. Both banks have been advising on the sale process.

But CVC is likely to be looking for other financing options as that debt package is on less attractive terms that the existing deal for Cinven and Goldman Sachs's buyouts arm.

A deal would be a welcome boost for Cinven as the European buyouts house, which also owns Italian aircraft parts maker Avio and Pizza Express group Gondola, seeks to raise at least 5 billion euros for its fifth buyout fund.