Nippon Paint to buy Australian rival DuluxGroup for A$3.8 billion

18, Apr. 2019

SYDNEY, NNA – Nippon Paint Holdings Co. will buy Australian rival DuluxGroup Ltd. for 3.8 billion Australian dollars ($2.7 billion) to boost its leading position in the global building coating market.

Nippon Paint will acquire a 100 percent stake in DuluxGroup by mid-August, it said in a statement Wednesday. DuluxGroup has a 53 percent share of the Australia and New Zealand market.

Nippon Paint will pay A$9.8 in cash per DuluxGroup share, a 35.4 percent premium on the stock’s average price for the past three months. The transaction is subject to regulatory approval in the two Oceanian nations, according to the statement.

The Osaka-based company says it has a 39 percent share of the global building paint and coating segment, worth an estimated total 9.1 trillion yen ($81.3 billion) in 2018.

DuluxGroup posted group net profit of A$149 million on sales of A$1.8 billion in the year to September 2018, according to the statement.

In Australia, Nippon Paint had previously sold building coating products via its Singapore unit.