DuluxGroup board recommends Nippon Paint acquisition

Company News

by Katrina Bullock

The board of paint and coating provider DuluxGroup (ASX:DLX) has unanimously recommended an acquisition proposal valued around $3.8 billion from Nippon Paint Holdings.

Nippon proposes to acquire DuluxGroup via a scheme of arrangement for $9.80 per share in cash – that represents a 35.4 per cent premium on the 3 month volume weighted average share price.

Nippon Paint Holdings says that 'DuluxGroup will still be DuluxGroup' and they do not expect changes to DuluxGroup's leadership, business portfolio, manufacturing or operations. However the acquisition will allow DuluxGroup to pursue its growth ambitions, leveraging Nippon’s global scale and resources.

The Scheme is expected to be implemented in mid August 2019.

Shares in DuluxGroup (ASX:DLX) are trading 26.86 per cent higher at $9.73