Trailer Magazine

Nippon Paint given green light to acquire DuluxGroup for $4.2B

  • Posted on Tuesday 16th, April 2019.

Nippon Paint is set to take over DuluxGroup after its board unanimously recommended a proposal from the Japanese-based company to acquire it.

It was deemed not in the best interest of shareholders to have the DuluxGroup operate as a standalone entity said DuluxGroup chairman Graeme Liebelt.

"The Board has carefully considered the strategic options available to DuluxGroup to maximise value, including continuing to pursue domestic and global growth as a standalone company, and we have unanimously concluded that the transaction with Nippon is in the best interests of our shareholders," he said in a statement.

"It provides an opportunity for shareholders to realise a significant premium to market value for their shares and is on terms that reflect the strategic value of DuluxGroup to Nippon," said Liebelt.

"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. I have confidence that this new partnership will provide strong benefits for both companies."

The $9.80 share offer from Nippon this week was pitched upwards of a 28 per cent premium.

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