On April 3, 2026, Sunway Bhd outlined its short- and long-term strategy following its proposed acquisition of IJM Corporation Bhd, highlighting early collaboration efforts and eventual integration plans.

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Short-Term Strategy (First 9 Months)

• IJM will continue operating independently
• Both companies will focus on delivering their existing contracts
• Initial collaboration will begin with joint procurement, allowing cost savings by purchasing materials together

This approach ensures business continuity while gradually introducing synergies.

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Collaboration Opportunities

Sunway plans to leverage each company’s strengths:

• IJM: Strong in civil construction
  • Potential involvement in major infrastructure projects like MRT and LRT
• Sunway: Strength in areas like property and data centres

This division allows both sides to complement each other’s expertise rather than overlap.

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Long-Term Vision: Full Integration

• Sunway intends to merge both entities over time
• An integration team will be formed, led by the president
• Board restructuring will include Sunway representatives

Workforce impact:

• Combined workforce: ~23,600 employees
• No job losses expected, indicating a growth-oriented merger strategy

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Property Development Approach

• Sunway emphasizes a long-term land development strategy
• Typically holds land for 20–40 years rather than selling quickly
• Post-merger, land use will be carefully evaluated, not rushed

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Takeover Status

• 99.27% of Sunway shareholders approved the acquisition
• Offer price: RM3.15 per share
• Structure:
  • 10% cash
  • 90% Sunway shares

Challenges:

• Major shareholders, including Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF), have rejected the offer
• Offer remains open until April 6, 2026

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What I Learned

1. Mergers often start with gradual integration
   Companies don’t immediately combine operations—instead, they begin with practical steps like joint procurement to realize early cost savings.
2. Synergies come from complementary strengths
   Sunway and IJM are focusing on what each does best (property vs civil construction), which reduces conflict and improves efficiency.
3. Long-term vision is key in large acquisitions
   The plan to eventually merge both entities shows that acquisitions are not just short-term financial moves but strategic transformations.
4. Employee stability is a major consideration
   Assuring no job losses helps maintain morale and ensures smoother integration.
5. Major shareholders can influence deal outcomes
   Even with strong internal approval, rejection from key institutional investors like PNB and EPF can determine whether a takeover succeeds.
6. Property strategy reflects company philosophy
   Sunway’s long-term land holding approach highlights how developers prioritize sustained value creation over quick profits.