The Japanese corporation announced it had acquired all shares of Multiplex's holding company, BCI UK Holdings Limited, and that it would become a subsidiary of Obayashi.
The company explained that it aims to establish 'a group-wide business structure centred on the [Japanese] domestic construction business and in which other businesses generate performance equal to or greater than that of the domestic construction business.'
Currently, Obayashi says, its overseas construction business is focused on North America and Southeast Asia, where growth in the construction market is expected. In addition, the group is further expanding civil engineering business in Canada and the real estate development business in the United Kingdom, supported by solid economic growth in each country.
Obayashi sees Australia as one of the group鈥檚 most important markets, and it has been exploring opportunities for full-scale market entry, considering the stable economic growth driven by robust population growth, the well-established legal framework and business infrastructure, and the stable political and economic relationship with Japan.
Multiplex is, Obayashi points out, one of the leading construction companies in the Australian market and has a strong reputation for delivering high value-added and technically complex projects, including high-rise buildings, hospitals, and data centres.
It has a solid track record in the United Kingdom, particularly in London, in the office and mixed-use development sectors, where it has established a strong competitive position. In Canada, it is a growing market for the company and further business expansion is expected, supported by steady growth underpinned by its high level of technical expertise.
Obayashi says this all led it to decide that making Multiplex its wholly owned subsidiary will contribute to the further growth and development of both parties and has therefore decided to make Multiplex a wholly owned subsidiary.
Multiplex CEO John Flecker welcomed the deal, saying, "This is a milestone moment for Multiplex, marking the next chapter in our evolution and creating one of the most significant construction groups in the world.
鈥淭here is a clear alignment of values and aspirations between Multiplex and Obayashi, a firm established more than 130 years ago, and we see significant opportunity ahead.
鈥淚mportantly, it is business as usual for our clients, partners and people. Our operations, projects and brand remain unchanged, and our leadership team will continue to lead the business into its next chapter.
鈥淥bayashi brings significant engineering expertise and global capability, viewing Multiplex as the perfect fit for its long-term global growth strategy. The acquisition strengthens Multiplex鈥檚 platform by providing access to global markets, technical knowledge and expanded opportunities for its people and partners. Multiplex will continue to operate independently, while benefiting from the strength of its new owner."