Nippon Paint to Buy Aussie Paint Maker for 300 B. Yen
Osaka, April 17 (Jiji Press)--Nippon Paint Holdings Co. <4612> said Wednesday that it will acquire all outstanding shares in major Australian paint maker DuluxGroup Ltd. as early as mid-August for some 300 billion yen.
By expanding sales channels through the acquisition, the Japanese company aims to diversify management risk amid growing concerns over the trade row between the United States and China. The company's sales in China account for 40 pct of its total sales.
New Zealand and Australia are "regions with prospects" in terms of the paint market, Nippon Paint President and Chief Executive Officer Tetsushi Tado told a news conference in the western Japan city of Osaka.
The company's overseas operations structure "will become extremely healthy," Tado also said.
According to Nippon Paint, the paint markets in New Zealand and Australia are growing steadily.
[Copyright The Jiji Press, Ltd.]