Kalkine: Soul Patts and Brickworks Seal $14B Merger: A New Powerhouse Joins the ASX200

June 10, 2025 01:00 PM AEST | By Team Kalkine Media

Google News:

Kalkine: Soul Patts and Brickworks Seal $14B Merger: A New Powerhouse Joins the ASX200 — Image source: shutterstock

Recent News

Alphabet stock pares gains on buyout offers to search and ads employee...

Groupon Bull Pushes Back on Short-Seller Report, Calls Claims “Sensati...

Hims & Hers stock falls after Lilly rules out partnership

US Commerce Secretary Lutnick says China trade talks going well

Highlights

$14B merger boosts asset synergies and investor exposure

Major uplift in property and building materials footprint

One of few listed paths to Australian construction sector

In a landmark move on the Australian market, Washington H. Soul Pattinson (ASX:SOL) and Brickworks (ASX:BKW) have announced a transformative $14 billion merger that could reshape long-term opportunities for investors seeking diversified exposure on the S&P/ASX200.

This strategic combination marks the formal end of a 56-year relationship built on cross-shareholdings, unlocking substantial value that was previously tied up and complex. By cancelling this intertwined structure, the unified entity enhances earnings per share while simplifying its investment profile—an appealing step for investors focused on performance and clarity.

Over the last 25 years, Soul Patts has significantly outperformed, delivering a 2055% return versus 682% from the All Ordinaries accumulation index. That’s part of why it has long stood out among ASX dividend stocks, maintaining a steady stream of dividend payouts and gradually increasing them through economic cycles.

The merger brings more than financial streamlining—it introduces compelling sectoral exposure. Brickworks’ building materials division positions the group to benefit from Australia’s pressing housing supply shortage. With a national backlog in home construction, demand for bricks, tiles, cement, and plasterboard remains strong. This makes the merger especially timely as much of the local building materials sector has been taken private, leaving Soul Patts one of the few public avenues into this space.

Beyond construction, the merger offers deeper exposure to property. Brickworks' industrial and commercial property portfolio—valued around $4 billion—will see property grow from 1.7% to nearly 19% of Soul Patts' overall assets. This enhances the group’s diversification, creating a robust mix of equities, private capital, credit, and now substantial real estate holdings.

Share markets have responded positively, with both companies seeing a rise in valuation post-announcement. The Millner family, historically central to both companies, will retain a 7–8% stake in the combined entity, ensuring continuity in governance and strategy.

In an environment where diversified growth, resilience, and dividend reliability are in demand, this merger could pave the way for Soul Patts to become one of the standout names on the ASX200—offering investors a unique blend of industrial strength and financial agility.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.