Home / Business and Economy / Sunway eyes IJM in $2.7B Malaysian property mega-merger
Sunway eyes IJM in $2.7B Malaysian property mega-merger
13 Jan
Summary
- Sunway proposes a $2.7 billion takeover of competitor IJM Corporation.
- The merged entity will have an $11.7 billion market capitalization.
- The deal aims to capitalize on Malaysia's booming data center construction.
Malaysian construction powerhouse Sunway has unveiled a substantial $2.7 billion takeover proposal for its competitor, IJM Corporation, aiming to create a dominant force in the Southeast Asian property market. Announced on January 12, 2026, this move seeks to combine two of Malaysia's most significant property developers into a single entity.
The proposed merger would establish a combined market capitalization of $11.7 billion, surpassing current leader Gamuda Berhad and positioning the new entity to pursue major projects. This strategic consolidation is fueled by Malaysia's ongoing boom in data center construction and infrastructure development, driven by increasing regional demand for AI and cloud computing services.
Sunway's offer of $0.78 per IJM share, a 15% premium over its recent closing price, includes a mix of cash and newly issued Sunway shares. This ambitious merger is expected to generate significant synergistic value, enhance economies of scale, and expand the enlarged Sunway Group's landbank, reinforcing its competitive edge in a rapidly growing market.
