Brookfield Business Partners stock surges after corporate structure simplification

Published 25/09/2025, 17:44
© Reuters.

Investing.com -- Brookfield Business Partners LP (NYSE:BBU) stock surged 14.3% on Thursday following the company’s announcement of plans to simplify its corporate structure by converting into a single publicly traded Canadian corporation.

The reorganization will combine Brookfield Business Partners LP and Brookfield Business Corporation (NYSE:BBUC) into one entity called "BBU Inc." BBUC shares, which currently trade at approximately 25% premium to BBU limited partnership units, fell 7.7% on the news.

According to the company, the conversion is designed to broaden its investor base, increase index demand, and improve trading liquidity, which it expects will drive long-term value for shareholders. The reorganization will provide broader access to global investors who prefer corporate structures and eliminate partnership tax reporting forms.

"We are pleased to announce the next stage in Brookfield Business Partners’ evolution as a public company," said Anuj Ranjan, CEO of Brookfield Business Partners. "The conversion into a single corporate entity is designed to broaden our investor base, increase index demand and make it easier to invest in our shares which we expect will drive long-term value for all our shareholders."

Under the plan, all BBU limited partnership units, BBUC class A exchangeable shares, and redemption-exchange units held by Brookfield will be exchanged for new class A shares of BBU Inc. on a one-for-one basis. The new entity’s shares are expected to be listed on both the NYSE and TSX.

BBU Inc. will pay an annual dividend of $0.25 per share, consistent with current distribution levels. The transaction, which requires unitholder and shareholder approval, is expected to be completed during the first quarter of 2026.

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