Akzo Nobel will not take over Kansai Paint’s activities in Africa
Akzo Nobel and Kansai Paint mutually agree not to proceed with African transaction.
Commenting on the decision, Akzo Nobel CEO, Greg Poux-Guillaume, says: “It’s disappointing that this intended acquisition cannot move forward, but we remain committed to our strong businesses and leading brands in Africa. As Akzo Nobel’s performance rebound gathers pace, we’ll remain focused on our key priorities, including the strengthening of our balance sheet, which will be accelerated.” The two companies have agreed that no break-up fee will be involved.
In June 2023 the Dutch paints and coatings producer has announced the intention to acquire African paints and coatings activities from Kansai Paint. Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around EUR 280 million. The Japanese company employs some 2,500 people and operates 19 manufacturing sites as well as 30 warehouses in Africa. The transaction includes the “Plascon” brand, which has more than 100 years of heritage in South Africa. Together with Akzo Nobel’s own “Dulux” brand, they’re the longest-established paint brands in the region. The intended acquisition also includes automotive and protective coatings, and coatings for wood and coil.
