Market Herald logo

Subscribe

Be the first with the news that moves the market

Dulux Group rose 27.2 per cent in the ASX today after announcing the Aussie paint company was bought out by Japanese Nippon Paint for a lucrative $3.8 billion. 

The acquisition is being implemented via a scheme of arrangement at $9.80 per share in cash. The Dulux board unanimously supported the acquisition this morning and recommends shareholders to do the same.

DuluxGroup will not change the name of the business and will be operated as a separate division from Nippon. The deal will mark Nippon entering the Australian and New Zealand market.

Nippon Paints generated approximately A$7.8 billion in sales for the 2018 financial year. Nippon currently operates in Asia, Europe, and the US.

DuluxGroup Chairman Graeme Liebelt says the move is in favour of maximising value, domestic and global growth for the company.

“Nippon has been extremely complimentary of DuluxGroup’s team, capability, high-quality businesses and track record of performance, all of which they want to maintain,” he said.

The share price represents a 27.8 per cent premium to the last closing price of $7.67.

The takeover, however, is still subject to the approval of shareholders, the courts, NZ overseas investment office, and the Foreign Investment Review Board.

Nippon CEO Tetsuhis Tado says the acquisition will provide further growth for Dulux.

“Nippon intends to maintain the legacy developed by DuluxGroup and facilitate DuluxGroup’s existing vision by leveraging the resources of the broader Nippon platform,” he said.

DuluxGroup shareholders will vote on the takeover in a meeting in late July.

Please see announcements attached here and here.

DLX by the numbers
More From The Market Herald
Butn (ASX:BTN) - Co Founder and Joint CEO, Rael Ross

" Butn (ASX:BTN) enters strategic partnership with Freightlancer

Butn (ASX:BTN) has entered a strategic partnership with Freightlancer, expanding its position in the freight marketplace…
QuickFee (ASX:QFE) - CEO and Managing Director, Eric Lookhoff

" QuickFee (ASX:QFE) highlights US quarterly growth and Australian lending recovery

Investors have had a mixed reaction to QuickFee 's (ASX:QFE) latest quarterly report, with company shares…

" Tower (ASX:TWR) responds after natural disaster in Tonga

Insurance provider Tower (ASX:TWR) is in assessing the impact of the significant eruption of underwater volcano…
The Market Herald Video

" Beforepay (ASX:B4P) still in the red after Monday debut

Beforepay Group (ASX:B4P) still in the red after Monday debut