BEIJING (Reuters) – Chinese construction material company Beijing New Building Materials (BNBM) has agreed to buy a 78.34% stake in paint and coating manufacturer Carpoly Chemical Group for 4.07 billion yuan ($573 million).
The transaction, pending review by the Chinese anti-monopoly watchdog, is expected to boost BNBM’s paint and coating business, which is currently limited to the northern Chinese market, BNBM said in a filing to the Shenzhen stock exchange on Friday.
Making Carpoly, a major paint producer based in the southern Chinese city of Jiangmen, a subsidiary will increase BNBM’s paint and coating capacity by more than ten times, according to the filing.
BNBM is buying the stake from entities including Hong Kong firm World Champion and companies linked to Carpoly founder Qiu Qiming and his family.
($1 = 7.1035 Chinese yuan renminbi)
(Reporting by Roxanne Liu and Ryan Woo; Editing by Kirsten Donovan)