Sunway and IJM to merge to form Malaysia’s largest construction group

Malaysian construction and property giants Sunway and IJM Corporation have announced a $2.7 billion (€2.3bn) share-and-cash takeover that would create one of the country’s largest property developers. 

The merger, disclosed on January 12 by Sunway president Anuar Taib, would result in a combined market capitalisation of $11.7 billion (€10.1bn), surpassing current market leader Gamuda Berhad at $7.2 billion (€6.2bn).

The deal comes amid a construction surge in Malaysia, driven by data center development and infrastructure expansion. Sunway’s stock filing noted the enlarged group would be positioned to pursue “mega projects such as development of large-scale data centers, industrial facilities and public infrastructure projects.”

Both companies feature on Fortune’s Southeast Asia 500 ranking. Sunway, ranked No. 190, reported $1.7 billion (€1.46bn) in revenue in 2024, while IJM, at No. 228, generated $1.3 billion (€1.12bn). Together, the merged entity would have $3 billion (€2.58bn) in revenue, elevating it to No. 120 and overtaking Gamuda.

Under the conditional takeover bid, Sunway offers IJM shareholders $0.78 (€0.67) per share, 15% above IJM’s 2025 closing price of $0.68 (€0.58). The deal proposes 10% cash and 90% newly issued Sunway shares for IJM investors. Following the announcement, IJM shares rose 2.9% while Sunway shares gained 0.2%.

Taib said the deal would create “synergistic value”, enabling both companies to enhance margins through economies of scale and access a broader pool of talent and technical expertise. The enlarged Sunway Group will also hold an expanded landbank of 2,300 hectares.

Read the full story to see how Malaysia’s construction landscape is being reshaped by this merger.

(Photo credits to Redo_72/Pixabay)