AkzoNobel and its American counterpart Axalto coating systems are considering equivalent mergers, but the negotiation is still in its early stages and the success of the test will take time.Akzonobel is the world's second largest paint manufacturer, Axalta Ranked fifth in the world.
If the deal is reached, a global paint giant with PPG Industries Group or will appear from the current sales in the first three quarters of 2017, PPG sales of 11.09 billion US dollars the first three quarters, AkzoNobel's first three quarters of sales of 129.1 billion US dollars , Axalta sales of 3.19 billion US dollars the first three quarters If Axalto Akzo Nobel and Axalta, the first three quarters of sales reached 161 billion US dollars, ranking ahead.As we all know, last year paint giant PPG plans to acquire AkzoNobel, A total of three offerings were made to AkzoNobel for a bid of 20.8 billion euros, 24.5 billion euros and 26.9 billion euros, respectively, but eventually failed with the withdrawal of the takeover bid.
Top 3 Coatings Sales in the World for the First Three Quarters in 2017
PPG awkward position
In the first and second PPG, AkzoNobel in 2016, the first three quarters of 2017, the first three quarters of sales of AkzoNobel ranked first with 12.91 billion US dollars, with PPG total sales of 110.9 billion US dollars ranked And PPG ranks third with Sunway, Valspar only 110 million US dollars only 0.9 billion US dollars.If PPG does not buy other paint companies, both Sherwin and Aksu will pose a great threat to him.
With strong growth in the third quarter and tremendous potential for growth, Sanatorium reported its third quarterly financial report for 2017, which shows that after the inclusion of Valspar's sales performance since June, Sanwei Company merged in the third quarter Net sales increased 37.4% YoY to a record high of US $ 4.51bn, bringing the company's January-September total sales to a record US $ 11bn, up 21.3% YoY, with Valspar in Q3 and 1-9 Monthly sales increased by 32.8% and 16.1% respectively.Data show that from January to September, the company's EBITDA from continuing operations increased by 9.6% to 1.7 billion U.S. dollars, Excluding the impact of mergers and acquisitions Valspar, the year-on-year growth rate of 4.3% from the performance of the plate soared to the third quarter of its high-performance coatings in the third quarter net sales in US dollars increased by 150.8% to 1.24 billion US dollars From January to September, it increased 68.4% YoY to 2.99bn US dollars, mainly due to the sales of combined Valspar companies, contributing 148.7% and 66.9% respectively.
PPG third quarter results compared to Sunway, to be much less PPG third quarter of this year's financial report shows that the quarter net sales of about 3.8 billion US dollars, an increase of more than 3%, of which the third quarter of the industrial coatings business unit net sales The amount was about 1.5 billion U.S. dollars, up by more than 3% over the same period of last year, but this was mainly driven by the increase in sales volume of over 3% and the positive impact of currency exchange rates, Bo's merger, its business growth rate has greatly exceeded the PPG, if PPG no longer take the development strategy, the position is likely to fall on Akzo Nobel, after Sherwin.
PPG acquisition of Aksu after the failure, what will be done
Faced with the poor performance, PPG actively take measures, announced in October this year in North America on all its industrial coatings products in North America average price increased 6%. However, raw material prices are common, PPG up, Akesu also Soaring, Sherwin-Williams, Valspar have the possibility of price increases, so that the performance gains brought about by price increases, and can not significantly increase its strength to confrontation.
PPG to occupy the leading position in the industry, you must find a continuous growth of sales, with potential for development, the annual total sales of more than 4 billion US dollars in mergers and acquisitions business from the 2016 global top ten paint point of view , With annual sales of more than 4 billion US dollars, in addition to PPG143 billion, AkzoNobel's 100 billion US dollars, 8.9 billion US dollars Xuanwei, Valspar 4 billion US dollars (has chosen Sherwin-Williams), Axalto 4.1 billion US dollars outside Is negotiating with Aksu), leaving only Nippon Paint $ 4.3 billion and RPM Lipari $ 4.81 billion for two good choices.
LPRP RPM, which is dominated by industrial coatings, has a market share of approximately 68% in North America, only 3% in Asia Pacific, and 23% in Europe, Middle East and Africa. If PPG acquired Liparom, Akesu contend, but its main business is still North America, North America, the business may overlap, and to the Asia-Pacific region to expand the market share is very limited, while the Asia Pacific region is the world's major consumer coatings market, if the merger with the Liparme, although Can barely compete in the present, but in the long run, the status of its boss is still no guarantee.
If PPG acquisition of Nippon, is more optimistic.Lianbang architectural coatings in China occupy the market share ranked first, and, in the floor paint, furniture lacquer, wood coatings segment has acquired China's long-run hair, Showper and other companies.Also, over the years, Nippon continues to expand production capacity in China, China is the world's paint production and consumption of large countries, the acquisition of Nippon, PPG will be even more powerful, it will help expand its market share in Asia Pacific Let us wait and see.But no matter who choose, the future paint market to Aksu, PPG, Sanwei three pillars of the situation has emerged, the oligarchic pattern will become more apparent .