On October 4, Nippon Paint Holdings Co., Ltd., the parent company of Nippon Paint Holdings Co., Ltd., issued a notice on the suspension of the acquisition of Chinese industrial coating manufacturers, announcing that Nippon Investment Co., Ltd. (hereinafter referred to as "Nippon Paint Holdings Co., Ltd.) has decided to suspend the acquisition of a majority stake in Mecca Paint, a Chinese industrial coating manufacturer.
中文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本語速公司文日本� However, after a long period of negotiation and discussion, it was believed that it would be difficult to achieve the expected profit growth target, so the acquisition was cancelled after the two companies reached an agreement.
On November 29, 2018, Nippon China and Mecca Paint Shanghai held a signing ceremony for cooperation, and will acquire 70% of the shares of Shanghai Mecca Paint Co., Ltd. and Mecca Paint Nantong Co., Ltd. (referred to as "Shanghai Mecca" and "Nantong Mecca" respectively, and declared that the relevant procedures for this acquisition are expected to be completed in early 2019.
According to previously disclosed data, as of 2018, the total sales of Mecca Paints companies were approximately 13.5 billion yen. Although Nippon has always kept silent about the amount of the acquisition, if the premium part is included, the acquisition price may be nearly 20 billion yen.
Mecca Paint entered China in 1995, and established a production base in Shanghai in 2002, Shanghai Mecca Paint Co., Ltd., which is mainly engaged in the research, development, production and sales of container paint, wind power paint, industrial paint and other products; since 2004, it has established offices and agency points in Beijing, Shanghai, Shenzhen and other regions respectively.
After several years of hard work, Mecca Paint has become a leading supplier of well-known brands in the fields of containers and wind infrastructure, especially in water-based paint . It is precisely because of the industrial coating foundation of Mecca Paints and considering the strong growth potential of China in the container and wind power infrastructure coating market that Nippon chose to acquire it.
Nipang's "strong construction and weak industry" attribute in the Chinese and Asian markets is well known in the paint circle. It is estimated that more than half of Nippon China's 15 billion yuan business sales come from construction paints. On the other hand, sales for industrial products account for only about 10% of China's business. Relevant research institutions said that if Nippon Pradesh completes the acquisition, it can be expanded to 16%.
Unfortunately, the acquisition plan was still "miscarriage" under Nippon's "concern". For Nippon Paints parent company Nippon Paints Holdings, the signing of Nippon China to acquire shares in Mecca Paints was at the time when it increased its investment and acquisition in China. However, after entering 2019, in view of the subtle changes in the international economic situation, Ritu Holdings has also made a strategic development direction to seek acquisition opportunities outside the Asian market to avoid the risks hidden by excessive dependence on the Chinese market.
In this context, Nippon Holdings has implemented two acquisitions outside the Asian market this year, especially the "303.6 billion yen" loan generated by the acquisition of Australian Dulux (Dulux Group) has tightened its capital chain. It is easy to understand Nippon's decision if it is impossible to confirm that Mecca Paint can bring the expected profit.
However, "Paints" always believes that in order to quickly expand the scale of industrial coatings business and build a competitive market position, acquisition is the best choice, which is also a common method of Nippon. I believe that when looking for higher "cost-performance" Chinese industrial coatings, Nippon will definitely take action again. Let's wait and see.
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