Chinese company Beijing New Building Materials (BNBM) has agreed to acquire a 78.34% stake in Carpoly Chemical Group, a paint and coating manufacturer.
The transaction is valued at approximately 4.07bn yuan ($573m) and is currently subject to approval by the country’s anti-monopoly authorities.
Upon successful completion of this transaction, Carpoly will become a subsidiary of BNBM.
The deal is expected to significantly enhance BNBM’s market presence in the paint and coating sector of China.
Currently, BNBM’s paint and coating operations are confined only to the northern market of the country.
This acquisition is expected to increase the company’s production capacity more than tenfold, Reuters said, citing BNBM’s recent filing with the Shenzhen Stock Exchange.
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The stake is being purchased by BNBM from several entities, including World Champion, a Hong Kong-based business, and companies associated with Carpoly founder Qiu Qiming and his family.
Carpoly is based in Jiangmen, Southern China, and focuses on the research and development, production, and sales of decorative paints, timber coatings, as well as other related products.
Founded in 1999, the paint and coatings manufacturer has a total of seven production facilities and more than 2,500 employees.
BNBM, meanwhile, was established in 1979 and is the new materials subsidiary of China National Building Materials Group.
Some of the solutions offered by BNBM include ceiling, exterior wall, and interior wall solutions.
BNBM said it has supported some major construction projects, including the Olympic Games, the World Expo, and the G20 event.