IJM Corporation is reportedly acquiring a 50% stake in the diversified construction entity JRL Group based in the UK.

The deal, which is yet to receive formal approval, will enable JRL to maintain its brand identity and continue trading under its existing name, according to Construction Enquirer.

This move is part of IJM's strategic efforts to expand its construction presence in London as well as the south-east of England.

The acquisition comes at a critical time for JRL Group, which has experienced significant financial challenges, culminating in losses of £83m ($104.48m) over what has been described as the most challenging period in the company's history.

The partnership is expected to provide the group with the necessary financial stability, improving its balance sheet and liquidity.

Despite recent setbacks, JRL's main contracting business, Midgard, has shown strong performance, contributing to the group's turnover and a promising order book valued at £1.5bn.

IJM's interest in the UK construction sector has been evident through its previous collaborations with JRL, including the Royal Mint Gardens project.

The company's ambitions have further materialised through a joint venture with Network Rail Property, targeting the development of 1,600 new homes in London.

According to sources from Construction Wave, JRL said: “We are very pleased that IJM Corporation, our trusted long-term partner, will be joining JRL Group. IJM’s investment brings a wealth of experience and capability to the business.

“Together, we are well-positioned to drive sustained growth, pursue new opportunities, and enhance our presence in the market.

“IJM’s international development expertise, together with JRL’s established UK market presence, will position both companies to drive transformative projects and expand their reach in the UK.”