Sekisui House has announced that it will acquire an American single-family home manufacturer for approximately $4.9 billion, or approximately 720 billion yen.
While the domestic housing market is shrinking, the company aims to strengthen its business in the US market, which continues to grow.
According to an announcement, Sekisui House has decided to acquire all the shares of MDC Holdings, which is headquartered in Colorado, USA and is involved in the single-family housing business.
The amount required to acquire the shares will be approximately $4.9 billion, or approximately 720 billion yen in Japanese yen, and the company aims to complete the acquisition procedure by July this year.
MDC ranked 11th in the United States in the number of homes delivered in the past year, and if the acquisition goes through, Sekisui House is expected to become the fifth largest company in the United States in terms of number of homes delivered.
In the domestic housing market, the number of construction starts is on the decline due to the declining population, and the company has been acquiring local companies to strengthen its business in the ever-growing American market.
At an online press conference, President Yoshihiro Nakai said, ``With this acquisition, we will be able to expand from the western part of the United States to the southeastern part of the United States.With our technological capabilities, we will be able to create better quality and more comfortable housing in the United States as well. We want to become a manufacturer that can supply a large amount."