Following Australia's largest paint maker, Dulux Group, announced that its 40,000 shareholders had overwhelmingly voted to sell the company to paint giant Nippon Paint for $3.8 billion (about $2.7 billion).
Dolux Group has applied to the Australian Federal Court to approve the plan at a hearing on August 6, 2019. Shareholders of Dolux Group registered on the share register on the plan registration date will receive a planned consideration of AUD 9.37 per share, with an estimated payment date of August 21, 2019.
Many people are not very clear about the relationship between Akzo Nobel and the Australian Dolux Group. In fact, the two companies have no relationship and are both independent companies. If it is related, it is the trademark DULUX. In many regions around the world, including Europe and China, the DULUX trademark is owned by Akzo Nobel. However, since DULUX is not the only trademark in the world, the trademark DULUX is owned by Dulux Group in Australia (including Australia, New Zealand, Papua New Guinea, Samoa and Fiji in the southern hemisphere). As for how Aksu and Aoduo agree to resolve market conflicts, there is no clear information yet. In short, there is no Australian version of Dulux in the Chinese market, and local people in Australia cannot enjoy the European flavor Dulux.
Previously, Nippon and Australia Dolux Group had close contact. Early painters all knew about the Oulong paint brand, which was first affiliated to New Opel Chemical (Shanghai) Co., Ltd. and was acquired by Orica Group in November 2008. In 2010, Aoruike Group established its own paint business and established Dulux Group in Australia. Olong Paint has become a brand under Degarang Camel, a subsidiary of Dolux, Australia. On January 15, 2014, Nippon Paint acquired the Oulong Paint (OPEL) brand product technology and channels under DGLCAMEL.
Nipang Paint's parent company is Ritu Holdings, and the actual major shareholder and controller of Ritu Holdings is Wu Denan Group. Last year, Wu Xueren, the successor of Wu Denan Group, continued to fulfill his predecessors' strategic layout and concentrate on developing the paint industry. Therefore, Nippon has made frequent acquisitions in the coatings industry in recent years.
In December 2013, Nippon China spent 245 million yuan to 57% of the shares of Xiupo Chemical.
On January 15, 2014, Taylor Paint acquired OPEL, a subsidiary of DGLCAMEL. (Note: In February 2018, Dejialang camel paint business was sold to Yeshi Chemical by its parent company, Dolux Group, for RMB 120 million, including its "Camel" camel paint, "Aquapro" and "Viva" brands).
From 2016 to 2017, Nippon China completed its actual holdings in Changrunfa Paint Group, a leading furniture paint enterprise.
In November 2017, Nippon Paint acquired Zhangzhou Xinzhanwang Chemical Co., Ltd. and Xiamen Xinzhanwang Automobile Materials Co., Ltd. The latter two companies focus on the research, development and production of automotive paint.
reported on November 29, 2018 that Nippon Holdings of Japan acquired "Shanghai Mecca Paint Co., Ltd." and "Mecca Paint (Nantong) Co., Ltd.". Nippon will acquire 70% of the shares of the two companies through its Chinese subsidiaries.
Dulux Group, a Dulux Group, dates back to 1918, has its original traditions starting with home decor paints in Australia and New Zealand. In addition to the "DULUX" brand, it also has other paint products (including auxiliary materials) brands such as Selleys, Cabot’s, and BritishPaint.
has been listed and traded on the Australian Stock Exchange since 2010. Hardware giant Bunnings is a major shareholder in the Australian retail coatings market.
financial report shows that Dolux Group's sales revenue in fiscal 2018 was 1.844 billion Australian dollars (approximately US$1.3396 billion), of which: the renovation and maintenance market business accounted for 66%, and the new real estate market business accounted for about 15%. In addition, Dolux also operates sealants and adhesives, B&D garage doors, garden care, cabinets and construction hardware businesses.
Osaka-based Nippon Paint intends to make few changes to the Dolux business, as there is little overlap between the two companies.The program outlined, “Dolux Group’s business will be conducted in roughly the same way it currently operates as part of a larger merger group”.
Nippon Paint announced on April 17 this year that it plans to acquire all shares of Dolux Group for 300.5 billion yen (approximately US$2.7 billion) in cash; on June 4, Nippon Paint announced that it planned to acquire a total loan of approximately 303.6 billion yen (approximately US$2.8 billion) for the acquisition of Dolux Group; on June 7, Dolux Group announced that the federal government did not oppose Nippon Paint acquiring 100% of Dolux Group's shares in accordance with the proposed arrangement.
Nippon Paint said that by incorporating Dolux into the group, it has added Oceania to Asia, which already has high competitiveness, thus further consolidating the competitiveness of NO.1 in the region. On the other hand, by increasing the Oceania region, the balance between high-growth and risky regions (Asia, China) and stable growth regions (Japan + US and Europe + Oceania) has been improved, and the career structure has become stronger.
According to the previously disclosed report, Nippon Paint currently has two major business regions - high-growth regions (Asia, China) and stable growth regions (Japan + US and Europe + Oceania). "Build a more balanced regional portfolio through this acquisition," Nippon Paint said.
report shows that Nippon Paint achieved sales of 627.7 billion yen (approximately US$5.66 billion, accounting for 2.7% of the global market), of which: China accounts for 42% (263.634 billion yen, approximately 16.3 billion), Japan accounts for 29%, Europe accounts for 14%, and other Asian accounts for 15%. After the merger of
and Dolux Group, Nippon Paint's sales in 2018 were 775.2 billion yen (approximately US$6.989 billion), of which: China accounts for 34%, other Asian accounts for 13%, Japan accounts for 23%, Europe accounts for 12%, and Australia accounts for 16%.
In order to expand its business outside Asia, Nippon Paint also announced on July 11 this year that it completed the acquisition of Turkish paint manufacturer Betek Group for a final price of approximately 1.407 billion Turkish lira (about US$245 million). According to data, Betek Group was established in 1988 and currently accounts for about 25% of the Turkish architectural coatings market.
