Sumitomo Mitsui Construction Co., Ltd. (TSE:1821) agreed to acquire 70% stake in Mitsui E&S Steel Structures Engineering Co., Ltd. from Mitsui E&S Holdings Co., Ltd. (TSE:7003) on May 13, 2020. Sumitomo Mitsui Construction Co., Ltd. (TSE:1821) agreed to acquire 70% stake in Mitsui E&S Steel Structures Engineering Co., Ltd. from Mitsui E&S Holdings Co., Ltd. (TSE:7003) for ¥1 billion on August 6, 2020. As per terms, Sumitomo Mitsui Construction will acquire 40,753 shares of Mitsui E&S Steel Structures Engineering.

Sumitomo Mitsui Construction will pay ¥1 billion as consideration for the transaction and ¥120 million for Advisory fees. The debt of Mitsui E&S Steel Structures Engineering and DPS Bridge Works will be repaid to Mitsui E&S Holdings by lending from Sumitomo Mitsui Construction. The final contract for the transaction will be signed in early August 2020.

For the year ended December 31, 2019, Mitsui E&S Steel Structures Engineering reported total assets of ¥8.2 billion, net assets of ¥2.3 billion, total sales of ¥16.8 billion, operating income of ¥1.2 billion and net income of ¥915 million. The transaction has been resolved by the Board of Directors of Mitsui E&S Holdings on August 5, 2020. Transaction is expected to be completed on October 1, 2020.