UPDATE 1-French TV group TF1 to buy 30% of M6 -Le Figaro

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PARIS, May 17 (Reuters) - French construction group Bouygues and its broadcasting unit TF1 plan to buy 30% of the shares of TV group M6 being sold by Germany’s Bertelsmann, French daily Le Figaro reported on its website.

Bertelsmann would hang on to 16% of M6 while the rest would remain listed on the stock market. The paper said the deal will be announced on Tuesday.

Bouygues could not be reached for comment.

In March, Bertelsmann Chief Executive Thomas Rabe said that talks about the sale of its stake, held via its broadcasting unit RTL, were making progress.

RTL is exploring the sale of its 48% stake in Groupe M6 as part of its push for in-country consolidation in the European broadcasting industry. Sources have mentioned French Bouygues and Vivendi as potential bidders.

Rabe said a deal with TF1 offered the best fit but faced regulatory hurdles.

He said that Europe needed major consolidation to create national champions that can invest in competing with the U.S. platforms, such as Netflix and Amazon Prime.

Reporting by Blandine Henault, writing by GV De Clercq, editing by Chris Reese and Marguerita Choy