Nippon Paint Holdings Co Ltd disclosed it hit a $12.18 billion deal with Singapore’s Wuthelam Group, whose stake in the Japanese company will rise to just under 60% from 39%.
As part of the deal, Nippon Paint will sell 1.185 trillion yen ($11.2 billion) worth of shares to Wuthelam.
Japan’s top paint maker said it will use the funds raised as well as 100 billion yen in cash to buy out Wuthelam from their Asian joint ventures in countries including China, Malaysia, and Thailand, as well as acquire Wuthelam’s wholly-owned business in Indonesia.
The 139-year-old Japanese firm is seeking growth outside its mature domestic market and has prioritized global expansion. Last year, it acquired Australia’s top paint maker DuluxGroup Ltd in a near $3 billion deal.
Asia is Nippon Paint’s most important market and accounts for 52% of its revenue, compared with 26% for Japan, according to the company’s website.
“Asia is becoming a key region for the company’s sustainable growth in terms of both market size and growth rate due to its projected demographic and economic growth leading to increasing demand,” Nippon Paint said in a statement.