Published Date : Dec 26, 2017
In the recent past, we have had several examples of growing financial might of Chinese manufacturing companies and now, Nippon Paint Holdings Co. has joined the bandwagon, revealing its aspirations to acquire and expand into the developed region of Europe and the country of the U.S. Although hailing from Japan, Nippon Paints has so far concentrated on the Asian region with maximum profits coming from China, the president Tetsushi Tadoh has confirmed that the world’s seventh biggest paint and paint product manufacturing company is on a shopping spree.
This decision comes on the back of its broken deal with Axalta Coating Systems Ltd, which is the biggest producer of automotive coatings. The company itself is aspiring to remain as one of the major player in the industry and is open to M&M activities.
As of September 30, 2017, Nippon Paint oozed from a net profit of about US$679 mn, although the company’s had fallen 13% the last month once the deal Axalta failed to produce desired result. The lack of clarification on a few terms within the set deadline has been perceived as the reason behind the deal didn’t go through, and the Philadelphia-based company claimed that the Japanese company weren’t given enough value to them.
On the other hand, the CEO of Axalta, Charles Shaver, has failed to strike a deal for the second time in a scenario, including Akzo Nobel NV’s broken deal, and facing trouble from increasing incrementing prices of raw materials are curtailing the profit margins.