Malaysian construction giant Sunway has announced a $2.7 billion share-and-cash takeover of competitor IJM Corporation, which would bring together two of Malaysia’s largest property developers.
The proposed merger, announced on Jan. 12 by Sunway president Anuar Taib, will form an entity with a combined market capitalization of $11.7 billion, surpassing current leader Gamuda Berhad, valued at $7.2 billion.
If the merger goes through, it will create one of Malaysia’s largest property developers as the Southeast Asian country’s construction market heats up amid a data center and infrastructure boom.
Both Sunway and IJM are on Fortune’s Southeast Asia 500 ranking, which lists the region’s largest companies by revenue. Sunway, at No. 190, generated $1.7 billion in revenue in 2024; IJM, at No. 228, generated $1.3 billion. A merged Sunway-IJM would have 2024 revenue totaling $3 billion, lifting it to No. 120—overtaking Gamuda.
In a stock filing in Bursa Malaysia, the country’s stock exchange, Sunway said the merger would “position the enlarged Sunway Group to pursue mega projects such as development of large-scale data centers, industrial facilities and public infrastructure projects.”
Malaysia is currently undergoing a boom in data center construction, as regional demand for AI and cloud computing services surge. In 2024, industry consultant DC Byte found that the country was Asia-Pacific’s fastest growing market for data centers.
Under the conditional takeover bid, Sunway is proposing to acquire IJM at $0.78 a share—15% higher than its 2025 closing price of $0.68 a share. Shareholders of IJM are being offered 10% in cash and 90% in newly-issued Sunway shares.
IJM shares rose 2.9% on Tuesday; Sunway shares are up just 0.2%. Trading in both companies’ shares were suspended on Monday pending the merger announcement. Sunway’s shares are up almost 25% over the past 12 months, ahead of Malaysia’s benchmark FTSE Bursa Malaysia KLCI index.
Fortune has reached out to Sunway for further comment.
A history of developments
Sunway is a family-run conglomerate founded in 1974 by Malaysian tycoon Jeffrey Cheah, who is still its key shareholder. The firm is famous for its “build-own-operate” business model and slew of diverse properties including the Sunway Lagoon theme park, Sunway Medical Center, and two educational institutions, Sunway College and Sunway University.
IJM was established in 1983, via the merger of three Malaysian construction firms: IGB Construction, Jurutama, and Mudajaya. The firm’s assortment of businesses span construction, property and infrastructure. It built major roads and bridges in Malaysia, including the West Coast Expressway, an interstate highway running along the west coast of the country.
In a stock filing, Sunway’s Taib said the deal would create “synergistic value”, allowing both firms to improve margins through economies of scale and access a broader pool of talent and technical expertise. The enlarged Sunway Group will also have an expanded landbank of 2,300 hectares, according to the filing.
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