Brookfield Sells Multiplex to Japan’s Obayashi for $924M, June 19

Brookfield Business Corporation announced on June 18 that it will sell Multiplex to Japan’s Obayashi Corporation for US$650 million (AUD$924 million). The deal includes approximately US$530 million in cash at closing plus an earn-out tied to future performance. Multiplex, founded in Perth in 1962, has been under Brookfield control since 2007 but suffered significant losses during that period. The transaction closes a chapter on one of Australia’s most recognizable construction brands and signals how foreign builders are expanding into key markets.

Why Brookfield Is Exiting Construction

Brookfield acquired Multiplex in 2007 and spun off its real estate and facilities management assets in 2016. The company has absorbed hundreds of millions in losses over nearly two decades. Anuj Ranjan, CEO of Brookfield Business Corporation, said the sale delivers a strong outcome for shareholders and demonstrates the company’s ability to recycle capital. The exit reflects broader pressures squeezing builders of all sizes right now, including cost inflation and project complexity.

Multiplex’s Track Record and Current Operations

Multiplex made US$3.8 billion in sales in the 2025 financial year with EBITDA of US$62 million. The company currently employs about 2,500 people across Australia, the United Kingdom, Canada and India. Multiplex has delivered major projects including the Sydney Olympic Stadium, Sydney Fish Market and Western Sydney International Airport. The business also has expertise in hospitals and data centre construction, which Obayashi cited as a key drawcard.

Obayashi’s Global Expansion Strategy

Obayashi is one of Japan’s Big Five construction companies, employing about 18,000 people across 156 companies. The group reported a 13 percent gross profit margin on AUD$23 billion in net sales at its 2025 annual general meeting. Obayashi CEO Toshimi Sato said the acquisition represents a significant milestone in expanding into Australia, the UK and Canada. The company is targeting an international business arm whose performance equals or exceeds its Japanese revenue.

Deal Timeline and Conditions

The transaction is subject to customary closing conditions and regulatory approval. Completion is expected by late September 2026. Multiplex’s operations, projects, brand and leadership team will remain unchanged under Obayashi ownership. The deal structure includes US$530 million in cash on closing plus an earn-out based on how the business performs after the sale.

Final Thoughts

Brookfield’s sale of Multiplex to Obayashi ends a loss-making chapter for the Canadian company and marks another major Australian construction asset moving to foreign ownership. Investors watching the sector should note this reflects structural challenges facing large builders globally.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.