Dutch paint maker AkzoNobel has agreed to buy Japan’s Kansai Paint’s business in Kenya and the rest of Africa, strengthening its footprint in the region.
Kansai Plascon assets and operations which are owned by Tokyo-listed Kansai Paint Co Ltd including in Uganda, Kenya, Tanzania, Zanzibar, and Burundi will now transfer to the Dutch firm, they said in a statement.
The move ends years of trade wars pitting the two rivals for the East African market.
Financial details of the transaction which is subject to local regulatory approvals were not disclosed, in the statement shared by the entities.
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” said AkzoNobel chairman and chief executive officer Thierry Vanlancker.
“Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”
The Osaka headquartered Kansai, is present in 12 countries in Africa including Kenya with regional consolidated revenue of over Sh32 billion and 2,500 employees working across 19 manufacturing sites and 30 warehouses.
On the other hand the Dutch paints and coatings maker is active in over 150 countries including Kenya and employs around 33,000.
“Moving forward, we believe that AkzoNobel will be an owner who elevates our businesses to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities as well as the long-term success of its paint business in Africa,” said Kansai Plascon east Africa chief executive Arvind Shekhawat.
“Plascon has the largest market share in Uganda and as the leader across East Africa is well positioned to take the step up to the next level with AkzoNobel.”
The deal ends years of trade wars marked by price cuts between the two rivals in the region.
The acquisition is also the latest in AkzoNobel’s buying spree over the past two years. Deals have included Titan Paints in Spain and Portugal, New Nautical Coatings in the US and Grupo Orbis in Latin America.
Kansai Plascon Africa Limited five years ago acquired Kenya’s Sadolin paints for Sh10 billion.
ALSO READ: Sadolin paints set to lose trade name