Nippon Paint Holdings Co. will acquire major Australian paint company, DuluxGroup Ltd. for 300.5 billion yen ($ 2.7 billion) to strengthen its foothold in the overseas market, the two companies announced on Wednesday.
The leading manufacturer of paint and coating aims to close the deal by mid – August to purchase DuluxGroup, which has the largest share of the paint market in Australia and New Zealand.
Nippon Paint said it hopes to take the lead in Asia by acquiring DuluxGroup, which is strong in the decorative paint segment.
The deal does not anticipate any changes in management, business portfolio, manufacturing or operations, the company said.
The deal is Nippon Paint’s largest acquisition yet, which said it’s looking to buy global competitors to keep pace with consolidation in a global $ 140 billion industry where the top 10 suppliers account for more than half of worldwide sales.
In 2017, the company made a bid for Axalta Coating Systems Ltd., the world’s largest manufacturer of coatings for cars, although the bid failed to make a deal.
