AkzoNobel, a Dutch chemical company, plans to reinforce its footprint in Africa by reaching an agreement with Kansai Paint, a Japanese, Osaka-based chemical company, to obtain its paints and coatings activities in the region.
The deal is expected to be closed during the year 2023.
Kansai is present in 12 countries in Africa and holds the regional revenue of around €280 million. The transaction comprises the Plascon brand, which has experience of more than 100 years in South Africa.
Together with the Dulux brand, the firm is the oldest established paint brand in the region. The acquisition includes protective and automotive coatings and coatings for coil and wood as well.
AkzoNobel CEO, Thierry Vanlancker, while commenting on the move, said this acquisition of the activities of Kansai in the region would help the firm expand its coatings further and paints businesses in Africa and offers a strong platform for growth in the future.
Kansai Paint shares the same goal and vision for sustainability and innovation. The firm looks forward to combining its expertise, which will offer a wider range of innovative products and more sustainable solutions to customers.
Kunishi Mori, President of Kansai Paint, said that they believe that AkzoNobel is the best owner as it contemplates the decorative paints business as an important one and will unlock the unlimited potential of the company by contributing to the development of the African economy.
This deal offers a great opportunity for Arvind Shekhawat and Prejay Lalla, Chief Executive Officers of KPEA and KPAL, to expand growth further.
The firm has faith that AkzoNobel will be the owner who will uplift the business to the next level. AkzoNobel is planning to invest in ESG and is committed to workforce development, innovation, wider career opportunities, and the long-term success of its paint business in Africa.
Source Credit - https://www.akzonobel.com/en/media/latest-news---media-releases-/akzonobel-to-acquire-african-paints-and-coatings-activities-from-kansai-paint