At the start of the new year, the mergers and acquisitions (M&A) activity in the paint industry gained momentum. Two major deals stood out, reshaping the competitive landscape in the global coatings sector.
On January 3, AkzoNobel officially completed its acquisition of British ICI Corporation for £8.1 billion ($16.1 billion). This strategic move significantly boosted AkzoNobel’s presence in the architectural coatings market and expanded its footprint, particularly in China. With ICI's strong brand portfolio, including the globally recognized Dulux, the deal solidified AkzoNobel's position as the world’s largest paint producer.
Dulux, one of ICI’s key brands, holds a substantial share in the Asia-Pacific region, where it dominates the architectural coatings market. It also has a strong foothold in Europe, capturing 40% of that market, along with a growing presence in Canada and the U.S. Prior to the acquisition, AkzoNobel had limited strength in the Asia-Pacific region, but now it can leverage the Dulux brand to increase its market share. Currently, AkzoNobel holds 9% of the $76 billion global paint market, equivalent to $7.2 billion. The acquisition is expected to raise its market share to 15%, translating into $11.6 billion in revenue.
Meanwhile, U.S.-based PPG Industries also made a significant move on the same day by finalizing its acquisition of the Dutch-based Macaron Group for €2.2 billion ($3.2 billion). This deal enhanced PPG’s standing across multiple end-user markets and significantly increased its revenue from architectural and decorative coatings.
The Macaron Group, established in 1999 through the merger of Total’s Sigma coating business and Kalon Group’s PetroFina division, had sales of €2 billion in 2006. The company specializes in construction, protective, marine, and industrial coatings, with operations spanning numerous European countries and expanding into Africa and Asia. Western Europe currently accounts for 70% of its sales, and it is the second-largest coatings manufacturer in Europe after AkzoNobel.
These two acquisitions highlight the ongoing consolidation in the global coatings industry, driven by companies seeking to expand their reach, strengthen brand portfolios, and gain a stronger foothold in high-growth regions like Asia. As the industry continues to evolve, such strategic moves are likely to shape the future of the market.
Mechanical Plate,Plastic Injection Parts,Drill Press Fixture Plate,Threaded Fixture Plate
Kun Shan Qi Dian Precision Mold Co., LTD , https://www.qidian-mold.com