In This Article:
IJM Corporation is reportedly acquiring a 50% stake in the diversified construction entity JRL Group based in the UK.
The deal, which is yet to receive formal approval, will enable JRL to maintain its brand identity and continue trading under its existing name, according to Construction Enquirer.
This move is part of IJM's strategic efforts to expand its construction presence in London as well as the south-east of England.
The acquisition comes at a critical time for JRL Group, which has experienced significant financial challenges, culminating in losses of £83m ($104.48m) over what has been described as the most challenging period in the company's history.
The partnership is expected to provide the group with the necessary financial stability, improving its balance sheet and liquidity.
Despite recent setbacks, JRL's main contracting business, Midgard, has shown strong performance, contributing to the group's turnover and a promising order book valued at £1.5bn.
IJM's interest in the UK construction sector has been evident through its previous collaborations with JRL, including the Royal Mint Gardens project.
The company's ambitions have further materialised through a joint venture with Network Rail Property, targeting the development of 1,600 new homes in London.
According to sources from Construction Wave, JRL said: “We are very pleased that IJM Corporation, our trusted long-term partner, will be joining JRL Group. IJM’s investment brings a wealth of experience and capability to the business.
“Together, we are well-positioned to drive sustained growth, pursue new opportunities, and enhance our presence in the market.
“IJM’s international development expertise, together with JRL’s established UK market presence, will position both companies to drive transformative projects and expand their reach in the UK.”
"IJM set to acquire 50% equity stake in JRL Group" was originally created and published by World Construction Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.