Key facts
- Sekisui Chemical will acquire a controlling stake in Australian construction company Ausbuild Group for A$335 million.
- The acquisition is part of Sekisui Chemical's strategy to expand overseas due to a shrinking domestic market in Japan.
- Ausbuild is headquartered in Queensland and engages in land development and home construction.
- Sekisui Chemical plans to acquire 51% of Ausbuild's holding company shares.
- The share transfer is scheduled for January 2027, with Ausbuild expected to become a consolidated subsidiary in the fiscal year ending March 2027.
Japanese homebuilder Sekisui Chemical announced on Thursday that it will acquire a controlling stake in Australian construction company Ausbuild Group for approximately A$335 million (about ¥37 billion). The move is part of Sekisui Chemical's strategy to expand its business overseas as the domestic market in Japan faces structural contraction due to population decline.
Ausbuild, headquartered in Queensland, Australia, is involved in land development and home construction. Sekisui Chemical aims to leverage this acquisition to establish a foundation for its Australian operations and expand its local housing supply capacity. The company plans to acquire 51% of Ausbuild's holding company shares, with the transaction expected to be completed in January 2027, making Ausbuild a consolidated subsidiary in the fiscal year ending March 2027.
The housing business is a core segment for Sekisui Chemical, accounting for about 40% of its revenue. However, Japan's new housing starts have been declining, with projections indicating a further drop in the coming years. To counter this, Sekisui Chemical has allocated ¥300 billion for M&A-related expenses under its medium-term management plan through fiscal year 2029. The company also sees potential in applying its "Sekisui Heim" unit construction methods, which involve factory production and on-site assembly, to address potential construction cost and timeline challenges in Australia. Australia, meanwhile, is experiencing population growth and a resulting housing shortage.