Brookfield Business Corporation has agreed to sell its global construction business, Multiplex, to Obayashi Corporation for $650 million. The transaction includes approximately $530 million in cash proceeds on closing, with an additional earn-out based on future business performance. This sale marks a significant step in Brookfield's strategy to recycle capital and enhance shareholder value.

Anuj Ranjan, CEO of Brookfield Business Corporation, stated that the transaction delivers a strong outcome for shareholders. He highlighted that Multiplex is a leading global construction business with a track record of delivering complex large-scale projects. Since acquiring Multiplex, Brookfield has worked with management to sharpen operational focus, strengthen profitability, and reposition the business for its next chapter.

Ranjan added that the company has secured nearly $1 billion in proceeds from asset sales and distributions since the start of the year, equivalent to over $4 per share of cash. He emphasized strong demand for Brookfield's model of buying and operationally transforming essential industrial and services businesses. The company aims to build on this momentum in the second half of the year.

Multiplex, founded in Australia in 1962, was acquired by Brookfield in 2007. It became a standalone construction business in 2016 after spinning out its real estate assets and facilities management business. The company operates significantly across Australia, the United Kingdom, and Canada, delivering iconic developments in commercial, residential, healthcare, infrastructure, hospitality, and mixed-use sectors.

The transaction is subject to customary closing conditions and regulatory approvals. It is expected to close in the fourth quarter of 2026. Brookfield Business Corporation is the flagship listed vehicle of Brookfield Asset Management's Private Equity Group, which manages over $1 trillion in assets.

Transaction Details

TD Cowen analyst Bill Katz has initiated coverage on Brookfield Business with a Hold rating and a price target of $34. The rating provides a benchmark for investors evaluating the company's stock performance on the NYSE under the ticker BBUC.

Analyst Details

The coverage initiation comes from Bill Katz, an analyst at TD Cowen. The Hold rating suggests that the stock is expected to perform in line with the market or industry averages over the near term.

Price Target

TD Cowen set a price target of $34 for Brookfield Business. This target represents the firm's projection of where the stock price is headed over a specific timeframe, offering a reference point for potential investor returns.