Chugoku Marine Paints, Ltd.
Notice Regarding Acquisition of Interest (Subsidiarization) for a New Production Base in China
Acquired 100% stake in Chinese subsidiary DNT Paints (Zhejiang) Co., Ltd. to make it a consolidated subsidiary. Acquisition price undisclosed. Transfer of rights and obligations scheduled for 2026-06-30.
Key Figures
- Acquisition Stake Ratio: 100.0% (0.0% before acquisition)
- DNT Paints (Zhejiang) Co., Ltd. Net Sales (Fiscal Year Ending December 2024): 46 million RMB
- DNT Paints (Zhejiang) Co., Ltd. Net Income (Fiscal Year Ending December 2024): △32 million RMB
AI要約
Overview of M&A
Chugoku Marine Paints, Ltd. resolved at the Board of Directors meeting on 2026-02-26 to acquire 100% ownership of DNT Paints (Zhejiang) Co., Ltd., a Chinese subsidiary of Dainippon Paint Co., Ltd., through its consolidated subsidiary CHUGOKU MARINE PAINTS (HONG KONG), LIMITED, aiming to increase production capacity in China and make it a consolidated subsidiary. DNT Zhejiang is located in Pinghu City, Zhejiang Province, and owns a state-of-the-art factory of approximately 22,000㎡. The acquisition price is undisclosed but agreed at a fair and reasonable price. The transfer of rights and obligations is scheduled for 2026-06-30, with share transfer execution planned for late July.
Future Outlook and Impact
The impact of this acquisition on consolidated earnings for the fiscal year ending March 2026 is expected to be minor. Despite consecutive losses over the past three years, DNT Zhejiang aims to return to profitability as a subsidiary of the Chugoku Marine Paints Group from the fiscal year ending March 2027 onward. This acquisition is expected to strengthen and stabilize production capacity more quickly and with lower investment than constructing a new factory.
