Global alternative asset manager,
Brookfield Asset Management Inc.
), recently announced a strategic merger with Johnson Controls to
create growth synergies under the new name - Brookfield Johnson
Controls. While the deal is expected to culminate by the end of
this year, the amalgamated company is projected to commence
operations from the first half of 2013.
Armed with over 162,000 employees, Johnson Controls is a
global leader and provider of diversified technology and energy
solutions for electronic vehicles, automobiles and buildings in
over 150 countries.
Brookfield Johnson Controls is the outcome of the association
of the properties of Brookfield and Johnson Controls in Australia
and New Zealand. Accordingly, Brookfield Multiplex Services will
be with the Australian and New Zealand business of Johnson
Controls Global WorkPlace Solutions.
Brookfield Multiplex Services offers real estate, facilities
and project management services to a range of large corporate and
government occupants in New Zealand and Australia. On the other
hand, Johnson Controls Global WorkPlace Solutions is also a
leader in facilities, corporate real estate and energy management
This marks the second partnership between the two entities,
the first being formed in Canada in 1992. Post merger, the
Canadian entity will be renamed Brookfield Johnson Controls as
Through this merger, both the entities seek to focus on
international expansion. Alongside, the companies expect to
diversify into more target sectors such as life sciences,
technology, industrial and oil and gas markets. We believe that
the merger should enhance the efficiencies of both the companies
since they share common growth goals.
Moreover, Brookfield's internal research estimates the
outsourced property services market in Australia and New Zealand
to be worth about A$18 billion, which is further projected to
grow by around 5% annually. This extends the opportunities for
the merged entity, which anticipates $250 million in annual
revenues within the first year and is expected to double in 5
years, thus laying significant growth prospects for the
Brookfield's peer group includes
SL Green Realty Corp.
Vornado Realty Trust
). Currently, the company carries a Zacks #3 Rank, which implies
a short-term Hold rating on the stock.
BROOKFIELD ASST (BAM): Free Stock Analysis
SL GREEN REALTY (SLG): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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