Brookfield selling Multiplex to Japanese giant Obayashi for £490m

The Canadian owner of Multiplex is selling the contractor to Japan’s Obayashi Corporation for US$650m (£490m).

Brookfield has owned the business since 2007 when it effectively rescued the firm after Multiplex racked up huge losses on its job to rebuild Wembley stadium.

Multiplex was founded in Perth, Australia, in 1962 by the late John Roberts and made its entrance into the UK by agreeing to rebuild Wembley when it signed a deal for the work in 2000.

Multiplex inked the job for £445m, going it alone on the bid after ditching a previous plan to price the scheme in joint venture with Bovis.

But the project was more than three years late, became mired in damaging, high-profile headlines and saw the firm and the job’s then main steelwork contractor Cleveland Bridge head to the High Court in a bitter dispute over whether the latter was fired from the project or walked off it.

It led Multiplex, then listed on the Australian Securities Exchange and led by John Roberts’ son Andrew, to issue a series of profit warnings with Brookfield picking up the business up in 2007 – the year Wembley finally opened.

Since then, Multiplex has reinvented itself as one of the leading tower builders in London and has won a string of jobs over the years including 22 Bishopsgate, 100 Bishopsgate and is currently on site building 75 London Wall. It also recently won a prized scheme to build a new AI building at Imperial College in west London.

Tokyo-based Obayashi, one of Japan’s largest construction groups, is buying Multiplex’s operations across Australia, UK, Canada and India. Last year, Obayashi posted a turnover $17.5bn (£13bn).

The firm is currently developing 60 Gracechurch Street in the City which is due to be built by Bovis.

In a statement, Anuj Ranjan, chief executive of Brookfield’s private equity group, said: “The transaction delivers a strong outcome for our shareholders, demonstrating our ability to continue recycling capital and support the growth of our business.

“Multiplex is a leading global construction business with a track record of delivering some of the most complex large-scale projects in the world.

“Since acquiring it, we have worked with management to sharpen operational focus, strengthen profitability and reposition the business for its next chapter.”

Multiplex global chief executive John Flecker said: “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.

“There 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.

“Importantly, 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.

“Obayashi brings significant engineering expertise and global capability, viewing Multiplex as the perfect fit for its long-term global growth strategy. The acquisition strengthens Multiplex’s 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.

“We are proud of what Multiplex has achieved and the culture we have built. With Obayashi’s backing, we are well positioned to build on that success and continue delivering for our clients and communities.”

In its last set of results, pre-tax profit at Multuiplex’s UK arm was down by half to just under £10m last year, having fallen a third in 2024, on revenue up a quarter to £973m. The number of staff in the UK was 700.