July 31st News — In a recent announcement, Global New Material International
revealed a significant agreement with the German Merck Group, entailing the
acquisition of Merck’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 milestone not only for Global New Material
International but also for China’s pearlescent material industry, signifying
that Chinese pearlescent materials have become a core global development force
and are gradually emerging as leaders in the international industry.
As the acquiring party, Global New Material International, 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,
acquiring a 42% stake in Korean CQV in 2023, marking a crucial step in its
international expansion and positioning it as the world’s third-largest
pearlescent material producer. In the same year, the State-owned Assets
Supervision and Administration Commission of Tonglu County, Hangzhou, Zhejiang,
further strengthened the company by investing an additional 1 billion yuan into
its subsidiary, Qise Luzhai.
According to Color Masterbatch Industry Network, Merck Group’s surface
solutions business is a global leader in surface performance materials, boasting
extensive technical expertise and wide-ranging sales channels. This business
specializes in providing surface solutions for coatings, cosmetics, and
industrial applications, holding a prominent position in the high-quality
pearlescent pigment market, particularly in the global automotive and cosmetics
sectors. Its product portfolio also includes active ingredients for cosmetics,
industrial functional products, and raw materials. Additionally, Merck holds
hundreds of patents in the pearlescent material field, leading the industry with
its advanced technology and continuous development of high-performance,
high-quality products.
Global New Material International, a manufacturer focused on surface
performance materials and pearlescent materials, is China’s largest pearlescent
material producer and the world’s third-largest. In the realm of synthetic
mica-based products, the company is the globe’s largest producer of synthetic
mica-based pearlescent materials. The company’s primary pearlescent material, an
optical effect pigment, is widely used in various sectors due to its unique
process and shimmering effects.
This acquisition aligns with Global New Material International’s “external
expansion” strategy, aiding the company in further accelerating industry
integration and enhancing its global market share. Industry insiders suggest
that this acquisition could have profound implications for the entire
pearlescent material industry, facilitating optimization and integration of the
industry chain and driving a leap in industry development.
In its announcement, Global New Material International noted 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 strategically
align with its current business. Upon completion of the transaction, the target
company’s future earnings and cash flow are expected to grow. Kai Beckmann,
member of the Executive Board of Merck and CEO of Electronics, also stated that
this integration will significantly enhance the competitiveness of the surface
solutions business, offering broad development prospects for employees and
customers.
For Global New Material International, 2024 is a pivotal year in its quest to
become a global leader in surface performance materials. The company will
continue to follow its “internal development and external expansion” strategy,
and the acquisition of Merck’s surface performance materials division is
undoubtedly a significant step towards becoming a global leader in surface