06 May Japanese Acquisitions in Australia Continue
Big and small, Japanese acquisitions in Australia continue apace. The distinguishing feature is the explosion of the range of sectors in which Japan’s corporate sector has an interest or an appetite for investment in Australia. No longer is it narrowly focussed on resources and energy – although of course these are the mainstay of Japanese total investment here.
A second bite – Nippon Paint
Nippon Paint made an initial sortie into Australia’s highly competitive paint market in 2008 by targeting a major distribution channel in Bunnings. The tie up with Bunnings however was not to last long and in 2010 that relationship ended.
This time Nippon Paint is back but using a masterstroke strategy with the acquisition of Australia’s iconic paint brand Dulux. The acquisition is valued at $3.8 billion and places this amongst a number of billion dollar plus ones by Japanese companies in Australia.
About Nippon Paint
- Japan’s leading paint manufacturer
- Ranked about 4th in the world
- Operates in 27 countries
- Very long history – it was established in 1881
Buying know-how – Mitsui
Mitsui has taken a 20% stake in Australian company Position Partners.
According to Mitsui, the company is already providing services to customers not only in Australia and New Zealand but also in South East Asia.
This investment reason is prominent in a number of recent Japanese investments in Australia. This is especially seen in the services sector where some Australian companies have developed business models for service delivery different from what is used in Japan. Expanding these services into Asia is seen as an excellent scaling opportunity.
About Position Partners
- Established in 2008 through a merger of five instrument distributors
- Largest Australian-owned company focussing entirely on the distribution and support of intelligent positioning solutions for geospatial, construction and mining projects.