Daiwa House acquires major stake in Sumitomo Densetsu

Japanese construction and real estate company Daiwa House Industry has agreed to acquire a 49.34% stake in engineering firm Sumitomo Densetsu for USD1.9 billion (€1.65bn). Legal and regulatory advisory was provided by Mori Hamada & Matsumoto, while Sumitomo Densetsu was represented by Anderson Mori & Tomotsune.

The tender offer began on 31 October 2025 and is scheduled to close on 15 December 2025. Daiwa House is offering JPY9,760 (USD63.45 / €54.95) per share, with a minimum purchase of 3.88 million shares. Sumitomo Electric Industries, the parent company of Sumitomo Densetsu, has agreed not to participate in the tender offer.

Following the tender process, Sumitomo Densetsu plans a share buyback to acquire all stock held by its parent company. Upon completion, the company will cease to be a consolidated subsidiary of Sumitomo Electric Industries and its shares will be delisted from the Tokyo Stock Exchange.

If Daiwa House does not acquire all outstanding shares through the tender offer, the company will implement a squeeze-out via share consolidation to secure full ownership. The transaction represents a significant move in Japan’s construction and engineering sector, affecting corporate structures and project operations within the market.

The deal covers a broad range of engineering services, and the consolidation is expected to streamline operations and support long-term investment and infrastructure projects managed by both Daiwa House and Sumitomo Densetsu. The agreement also aligns with regulatory compliance under Japan’s Companies Act, Financial Instruments and Exchange Act, and Competition Act.

Access the full report for a detailed breakdown of the acquisition and its impact on Japan’s construction sector.