CBRE In Discussions To Buy Johnson Controls Unit: Reports

(RTTNews) - Commercial real estate services firm CBRE Group Inc. is in discussions to acquire Johnson Controls Inc's (JCI) global workplace solutions or GWS business for over $1 billion, reports said. The division manages 1.8 billion square feet of corporate real estate worldwide.

While the value of the deal is not yet known, it is said to be worth between $600 million and $1.5 billion.

Talks are still on, and a deal is not yet certain. An auction for the business had attracted many private equity firms.

CBRE provides a wide range of real estate services, including brokerage, commercial mortgage origination and servicing, in addition to facilities management. The acquisition is expected to strengthen CBRE's facilities management business.

It was in September 2014 that the auto parts supplier said it intends to divest its GWS business as part of its intention to divest businesses that are non-core to its long-term growth strategy.

The GWS business provides on-site management of real estate and energy use for large multinational companies around the world. It brings in $5 billion in sales but the company is divesting the business as it does not earn much profit.