Nippon Paint Holdings announced that it would acquire Akzo Nobel's Southeast Asian architectural coatings business, sending its share price higher the same day. Buying has been dominant on expectations of the acquisition's benefits.
According to Nikkei reports, Nippon Paint HD announced on the 5th that it would acquire Akzo Nobel's Southeast Asian architectural coatings business. The share price rose from the previous weekend's close and was bought up to around ¥1,179.50 at one point.
Expectations are spreading that the acquisition will contribute to earnings growth by bringing Akzo's premium brands, including Dulux, into Southeast Asian markets.
Dulux, which is sold by Akzo Nobel, is reported to have high recognition in the premium residential market.
Following the acquisition news, Nippon Paint HD is expected to pursue a policy of expanding growth opportunities outside Europe and North America by strengthening its architectural coatings business.