Akzo Nobel Coatings International B.V. entered into an agreement to acquire Kansai Plascon Africa Ltd. and Kansai Plascon East Africa (Pty) Ltd. from Kansai Paint Co., Ltd. (TSE:4613) for ¥58500 million on June 1, 2022. Actual transfer price is subject to adjustment based on balance of cash and cash equivalents, borrowings, etc. and increase / decrease in working capital as of the closing. Akzo Nobel Coatings International B.V. will acquire Kansai Plascon Africa Ltd. and Kansai Plascon East Africa (Pty) Ltd. 83.31%and 100% respectively. The transaction is subject to the regulatory approvals of the relevant authorities and Antitrust approval. The transaction is expected to be completed in the course of 2023. As of November 9, 2022, The Competition Commission has prohibited this proposed transaction. As of September 8, 2023, the deal is subject to a condition that it divests its Sadolin paint brand to an independent or third-party competitor based in Uganda. Until the approval by the Commission, the parties commit to ring-fence their respective business in the common market. The buyer of the divested brand must not have any structural relationship with the merging parties. It said the divestment shall include all the required licences to enable the buyer to independently access raw materials, manufacture, distribute, and market the Sadolin brand. The divestiture would take the form of a perpetual royalty-free licence to manufacture and supply Sadolin branded paint in Burundi, Kenya, Rwanda, and Uganda. An obligation is placed on the merging parties to ensure that the divestiture be notified to the CCC within six months from the date of merger approval, failing which this aspect of the merger will also be prohibited. Heather Giannandrea and Henk van Ravenhorst of De Brauw Blackstone Westbroek N.V. acted as legal advisor to Kansai Paint Co., Ltd. and Deloitte Financial Advisory Services B.V. acted as financial advisor and Deloitte & Touche Netherlands acted as Accountant to AkzoNobel., Webber Wentzel, MHM.

Akzo Nobel Coatings International B.V. cancelled the acquisition of Kansai Plascon Africa Ltd. and Kansai Plascon East Africa (Pty) Ltd. from Kansai Paint Co., Ltd on November 29, 2023.