Recently, Global New Material International announced a major agreement with Germany’s Merck Group, acquiring the latter’s global surface solutions business for approximately 5.187 billion yuan (665 million euros) in cash. This transaction, expected to be completed by 2025, marks a significant milestone for Global New Material International and the Chinese pearlescent materials industry, indicating that Chinese pearlescent materials have emerged as a global development force and are gradually becoming leaders in the global industry.
As the acquirer, Global New Material International is a leading manufacturer of pearlescent materials and synthetic mica materials, listed in Hong Kong two years ago with a current market value of 5.1 billion yuan. In recent years, the company has actively expanded into international markets, successfully acquiring 42% of South Korea’s CQV in 2023, marking an important step in its international expansion and making it the world’s third-largest producer of pearlescent materials. In the same year, the State-owned Assets Management Committee of Tonglu County, Hangzhou, Zhejiang Province, increased its capital contribution to its subsidiary, Qiseluzhai, by 1 billion yuan, further strengthening the company’s strength.
According to information from the Color Masterbatch Industry Network, Merck’s surface solutions business is a global leader in surface performance materials, with deep technical accumulation and extensive sales channels. The business focuses on providing surface solutions for coatings, cosmetics, and industrial applications, occupying an important position in the high-quality pearlescent pigment market, especially influential in the global automotive and cosmetics markets. Its product portfolio also includes active ingredients for cosmetics, some industrial functional products, and raw materials. Additionally, Merck holds hundreds of patents in the field of pearlescent materials, leading in technology and continuously developing high-performance, high-quality products to maintain its industry-leading position.
Global New Material International, a manufacturer specializing in surface performance materials and pearlescent materials, is China’s largest producer of pearlescent materials and the world’s third largest. In the field of synthetic mica-based materials, the company is the world’s largest producer of synthetic mica-based pearlescent materials. The company’s main pearlescent material is an optical effect pigment widely used in various fields due to its unique process and sparkling effects.
This acquisition will be a continuation of Global New Material International’s “extension expansion” strategy, helping the company further accelerate industry integration and increase its global market share. Industry insiders believe that this acquisition may have a profound impact on the entire pearlescent materials industry, contributing to the optimization and integration of the industry chain and promoting rapid industry development.
In its announcement, Global New Material International stated that given the rapid development of the global pearlescent pigment industry in recent years, the company believes that the leading market position, global sales channels, and strong brand of Merck’s surface performance materials division are strategically aligned with the company’s current business. After the transaction is completed, the target company’s future earnings and cash flow may increase. Meanwhile, Kai Beckmann, a member of Merck’s Executive Board and CEO of Electronics, also stated that this integration will significantly enhance the business competitiveness of surface solutions, providing broad development prospects for employees and customers.
For Global New Material International, 2024 is a critical year to strive to become a leading global surface performance materials enterprise. The company will continue to follow the strategy of “endogenous development and extension expansion,” and this acquisition of Merck’s surface performance materials division will undoubtedly be an important step for the company to become a leading global surface performance materials enterprise.