According to The Australian Financial Review, the boss of Australia's biggest paint maker, Dulux Group, says he wants to keep running the company after Japanese giant Nippon Paint's agreed $3.8 billion buyout, and claims the core business is largely immune from a housing downturn.
Nippon Paint, the No.1 paint company across Asia that employs 20,000 people around the world, made a surprise takeover bid at $9.80 per share recently. The shares immediately jumped 27 per cent to $9.75, indicating investors think it's a near certainty investors will approve the deal at meetings scheduled for July.
The move underlines the increasing appetite of growth-starved Japanese companies for well-run Australian businesses. In October, 2018 Commonwealth Bank sold Colonial First State Global Asset Management to Japan's Mitsubishi UFJ Financial Group for $4.1 billion. Hitachi Construction Machinery bought heavy engineering group Bradken in 2017 in a $689 million takeover.
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