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Australia’s Maas Group announced on Thursday it will sell its building materials division for up to A$1.70 billion ($1.19 billion) as part of a strategic pivot toward artificial intelligence infrastructure. The Maas Group building materials sale to Heidelberg Materials’ Australian subsidiary, HMA, marks a dramatic shift for the construction conglomerate founded by former rugby player Wes Maas over two decades ago.
The company simultaneously revealed plans to invest A$100 million in Firmus Group, an Nvidia-backed AI infrastructure firm, acquiring a 1.7 percent stake. According to the announcement, the transaction will transfer approximately 1,140 employees to HMA along with the Construction Materials unit, which generated roughly half of Maas Group’s A$219 million in core operating earnings during fiscal 2025.
Market Reaction to Building Materials Divestment
Shares of Maas Group plummeted as much as 26.1 percent following the announcement, representing the steepest one-day decline in the company’s history. The broader Australian benchmark index fell only 0.4 percent during the same trading session, highlighting investor concern about the strategic direction.
Ron Shamgar, head of Australian equities at TAMIM Asset Management, indicated the market was surprised by the company’s decision to exit a strong construction business in Queensland. The region is currently experiencing population growth and infrastructure development related to the upcoming Brisbane Olympics, according to Shamgar.
Strategic Shift Toward AI Data Centers
The divestment reflects Maas Group’s broader transition toward data center construction, a sector experiencing rapid growth driven by increasing demand for facilities supporting artificial intelligence systems. However, Shamgar noted investor skepticism about entering what he described as the capital expenditure-heavy AI and data center sector.
Additionally, the company’s move follows a pattern among Australian firms pivoting toward AI infrastructure. Goodman Group, an Australian data center landlord, has already embarked on a similar shift toward data center development, demonstrating growing interest in the sector.
Previous Collaboration with Firmus Group
The A$100 million minority investment in Firmus Group represents an expansion of existing business relationships between the two companies. In mid-December, Maas Group secured an A$200 million electrical infrastructure contract with Firmus Technologies, establishing a foundation for the current partnership.
Meanwhile, the sale to Heidelberg Materials strengthens the German cement maker’s position in the Australian construction materials market. The acquisition of Maas Group’s Construction Materials division will provide HMA with significant operations and an established workforce in a growing regional market.
Regulatory Approval and Timeline
The Maas Group building materials sale requires both regulatory approval and shareholder consent before finalization. According to the company statement, continuity of operations will be ensured through the transfer of employees and assets to HMA.
The transaction is expected to be completed during the second half of calendar year 2026, subject to the necessary approvals. Authorities have not indicated potential obstacles to the deal, though the extended timeline suggests a comprehensive review process ahead.
