Image source: Shutterstock

Highlights

  • Proposed $14 billion merger will consolidate long-standing cross-shareholdings into a single ASX-listed entity.

  • Brickworks shareholders offered a 10.1% premium, while Soul Patts shareholders will receive 1:1 shares in new entity ‘TopCo’.

  • TopCo to be renamed Washington H Soul Pattinson.

In a landmark deal set to reshape Australia's investment and industrial landscape, investment house Washington H Soul Pattinson (ASX:SOL) and building products giant Brickworks (ASX:BKW) have announced a proposed merger to form a new $14 billion ASX-listed company.

The move comes after 56 years of cross-shareholding between the two companies and is designed to simplify ownership structures, increase scale, and unlock greater value for shareholders. Under the proposal, the newly created entity, currently referred to as ‘TopCo’, will assume the name Washington H Soul Pattinson and Company Limited and retain the ASX ticker SOL.

What the Merger Means for Shareholders

As part of the merger arrangement:

  • Brickworks shareholders will receive 0.82 shares in TopCo for each Brickworks share held, translating to an implied value of $30.28 per share—a 10.1% premium on the last traded price.

  • Soul Patts shareholders will receive one TopCo share for every Soul Patts share they own.

Currently, Soul Patts holds a 43.3% stake in Brickworks, while Brickworks owns 26% of Soul Patts, resulting in a complicated dual-ownership model. The merger would eliminate this cross-shareholding, creating a simplified and more transparent corporate structure.

Strategic Rationale

In a joint statement, the companies said the new structure will create an enhanced investment vehicle that increases Soul Patts’ shareholders’ exposure to Brickworks’ building products division and lucrative property assets. The merged entity will also have improved access to capital, with commitments already secured for $550 million in new equity at no discount to Soul Patts’ recent closing price of $36.93.