8.2 Billion Yuan! BASF Paints Sell Factory!

Recently, Sherwin-Williams' $1.15 billion (approximately RMB 8.2 billion) acquisition of BASF’s Suvinil coatings brand has been approved by the Brazilian competition regulatory authority.

The General Superintendence (SG) of the Administrative Council for Economic Defense (CADE) in Brazil has decided to approve the concentration act in the decorative coatings market. The General Superintendence of the Administrative Council for Economic Defense (Cade) has unconditionally approved the acquisition by Sherwin-Williams of Suvinil, the coatings company formerly belonging to the Basf Group. This decision has been published in the Federal Official Gazette (DOU).

According to the real-time news system Broadcast of Grupo Estado, the acquisition of the paint manufacturer is valued at 1.15 billion USD. The transaction also includes the Glasu! brand and two factories located in Jaboatão dos Guararapes (Pernambuco state) and São Bernardo do Campo (São Paulo state), which together employ approximately 1,000 people.

Regarding the economic and strategic rationale for this transaction, both parties pointed out that the operation is highly compatible with Sherwin-Williams’ current business in Brazil and represents an opportunity to expand its portfolio. According to the company, the proposed transaction will expand Sherwin-Williams’ operations in this sector by combining its existing business with Suvinil’s activities. Suvinil’s paints, sold under the Suvinil and Glasu! brands, are widely recognized, enabling the company to serve a broad customer base, including professional paint stores, home centers, and small building material stores.

Industry insiders stated that the approval of this acquisition not only allows Sherwin-Williams to leverage the brand influence and customer base of Suvinil and Glasu! to further consolidate its presence in the Brazilian coatings market, but also lays a solid foundation for its subsequent business expansion in the region through the integration of the production capacity and workforce of the two factories. From an industry perspective, this transaction may reshape the competitive landscape of the Brazilian decorative coatings market, driving the concentration of market resources towards leading enterprises. For Sherwin-Williams, this successful layout also accumulates experience for its future expansion into other markets in Latin America. Going forward, it is expected to continuously enhance its global market share and competitiveness in the coatings industry by relying on localized operational advantages.