AkzoNobel to Explore Mergers, Sales of South Asia Operations
The company sees the decorative paints market in South Asia as ripe for consolidation
AkzoNobel AKZA -2.07%decrease; red down pointing triangle said it will explore options for its South Asia decorative paints operations, ranging from establishing partnerships to seeking mergers or asset sales, as part of a strategic review.
The Dutch paints maker last week laid out plans to cut 2,000 jobs globally, or around 5.6% of its workforce, in a bid to counter cost pressures and simplify operations after earnings disappointed recently.
The company said late Thursday that the review of its portfolio will start in South Asia, where it sees the decorative paints market as ripe for consolidation. AkzoNobel said its decorative paints operations in South Asia are well placed to participate in the market’s development, singling out its India business as highly profitable.
“The review will explore various strategic options ranging from partnerships or joint ventures through to mergers or divestments,” AkzoNobel said.
The review aims to redeploy capital toward accelerating growth in the group’s core coatings business, AkzoNobel Chief Executive Greg Poux-Guillaume said.