BRUSSELS, Belgium (AP) — European Union antitrust regulators on Monday cleared U.S. paint producer PPG Industries Inc. to buy SigmaKalon Group of the Netherlands in a US$3.1 billion (euro2.2 billion) deal that would help it expand into Europe and Asia.
The European Commission said it had looked at coating products for cars, ships and packaging where both companies are rivals but did not see problems because market shares are not significant and each business has a different product and geographic focus.
Pittsburgh-based PPG — which makes paints, coatings, chemicals and other products — offered to buy SigmaKalon from Boston-based Bain Capital earlier this year.
The acquisition would more than double PPG's sales in Europe, where SigmaKalon is the second-largest coatings company.
It said the move would strengthen PPG's architectural paint business and supplement its protective and marine coatings businesses, while giving PPG a foothold in the European architectural coatings market.
SigmaKalon supplies architectural, protective, marine and industrial coatings mostly in Europe, Africa and Asia. It recently bought an architectural coatings firm in China.
SigmaKalon, based in Uithoorn, Netherlands, had 2006 revenue of about US$2.76 billion, according to PPG. Its brands include Sigma Coatings, Johnstone's, Leyland, Primalex and Seigneurie, among others. It was acquired by Bain Capital four years ago.
SigmaKalon was formed in 1999 through a merger of Britain-based decorative paint maker Kalon Group, a subsidiary of Total SA, and Sigma Coatings, owned by Belgian oil company Petrofina.
PPG reported a profit of US$711 million on revenue of US$11.04 billion for the fiscal year 2006. The company employs more than 34,000 people in more than 25 countries.
