Japan’s Obayashi Group, one of the country’s five largest construction companies, has announced it will acquire 100% of the shares of UK-headquartered contractor Multiplex from previous owner Brookfield, an investment firm.

Reported to cost $540m, the deal will see Obayashi Group diversify into the Australian market, which it has identified as growing due to population increases, urban development and a stable economy.

Obayashi says it will leverage Multiplex’s track record in office and mixed-use developments in the UK and also expand into Canada.

John Flecker, Multiplex Global’s chief executive, 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.

“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.”

Obayashi and Multiplex have previously collaborated on the main stadium for Sydney’s 2000 Olympic Games.

The acquisition is due to be completed in September 2026.