South Africa’s competition watchdog has vetoed the transfer of Kansai Paint’s African paints and coatings activities to AkzoNobel, prompting the companies to terminate their agreement and “pursue different paths”.
“With regard to the share transfer under the agreement (transfer), Kansai Paint has advanced the process for antitrust approval of the relevant authorities. However, the Competition Tribunal in South Africa, which is an important region for Kansai Paint’s African business, has issued an order prohibiting the transfer,” said Kansai Paint. “As the closing of the transfer is subject to the antitrust approval of the relevant authorities, the parties have agreed to pursue different paths and have terminated the agreement on November 29, 2023.”
Greg Poux-Guillaume, CEO of AkzoNobel said: “It’s disappointing that this intended acquisition cannot move forward, but we remain committed to our strong businesses and leading brands in Africa. As AkzoNobel’s performance rebound gathers pace, we’ll remain focused on our key priorities, including the strengthening of our balance sheet, which will be accelerated.”
Kansai Paint said it will continue to operate its African business, aiming to strengthen its competitiveness in the African market and improve customer satisfaction. The two companies added that the termination will not involve a break-up fee.
BodyShop News reported on the proposed acquisition, which was to include Kansai Paint’s automotive and protective coatings businesses, in June 2022.