Kansai Paints to acquire Saudi paint company
Kansai Paints is planning to expand into the emerging Saudi Arabian coatings market. It plans to acquire Saudi Industrial Paint Co, a supplier of protective coatings to Saudi Arabian Oil Co.
The acquisition is expected to help Kansai tap the Persian Gulf countries’ energy and infrastructure industries.
Fast-growing region
The deal is being negotiated currently and a final outcome is expected around Q4 of this year. Kansai mainly caters to the Japanese auto industry. But the paints major is also looking at decorative paints and industrial coatings markets outside of Japan. Although the fall in oil prices has affected the Gulf Cooperation Council (GCC) countries, such as Qatar, Kuwait and the UAE, are still going ahead with its infrastructure upgrades, opening up opportunities for coatings players like Kansai. In fact, GCC, along with India, are said to be the fastest-growing regions for the next five years.
