DIC Corporation Acquires the Global Pigments Business of BASF

Posted by MarketsandMarkets on Sep 4, 2019, 4:41:10 PM
MarketsandMarkets

On 29th August 2019, DIC Corporation signed an agreement for the acquisition of BASF’s pigments business for around USD 1.3 Billion. With this acquisition, DIC Corporation is aiming at expanding its fine chemicals business and fortifying its position among the world’s largest pigments suppliers.

MarketsandMarkets™ View Point:

DIC Corporation is a leading manufacturer of fine chemicals with a significant market share in pigments, globally, and BASF (Germany) is the largest manufacturer of pigments, including both organic and inorganic, globally, with 13 pigments production sites in China, France, Germany, Korea, the Netherlands, Switzerland, and the US. DIC Corporation’s strategy of acquiring BASF’s global pigments business will not only help the company expand its fine chemicals business, but also strengthen its position as one of the leading pigments suppliers globally.

According to Sakshi Jain, Team Lead, Chemicals and Materials Reasearch at MarketsandMarkets™, “As a global leader, BASF manufactures high-quality pigment products for diverse applications with continuous innovations.”The company recently launched a new color & effect brand for pigments catering to the coatings, printing inks, plastics, and cosmetics markets. One of the competitive advantages of BASF is its high emphasis on R&D, which has led the company to offer innovative products over the years. Recently, BASF has launched a new cosmic blue stir-in pigment under its color & effect brand.

Impact of Acquisition:

DIC Corporation is one of the world’s largest diversified chemical companies that serves industries such as automotive, electronics, food & beverage, and building & construction. The company is focusing on the strategy of expansion in the emerging markets to strengthen its core business. In the past, the company acquired Sun Chemical (US), a recognized leader for pigments in printing inks and coatings application. DIC Corporation has also launched new pigment products focusing on automotive and architectural coatings market. Besides its strong presence in the US and Japanese markets, it is also establishing its presence in the emerging markets such as Central & Eastern Europe, Latin America, and the Middle East. According to Sakshi Jain, Team Lead, Chemicals and Materials Reasearch at MarketsandMarkets™, “Acquisition would add to DIC Corporation’s geographical advantage and provide a wide product portfolio. The large customer base, coupled with 13 pigments manufacturing sites of BASF across the globe, innovative R&D centers, and in-depth knowledge that the company holds for the local market, would further help the former understand the growth prospects in the emerging markets.”

The figure below showcases the growth potential in the pigment dispersions market. The growing demand for paints & coatings, printing inks, and plastics is expected to drive the demand for pigment dispersions.

FIGURE 1 PIGMENT DISPERSIONS MARKET, 2019 VS. 2024 (USD BILLION)

Article_Pigments - MnM_F

Note: e - Estimated, p - Projected
Source: Related Research Publications, Government Publications, Company Press Releases, Company Annual Reports, Company Websites, Company Publications, and MarketsandMarkets™ Analysis

Impact on Top Competitors:

Some of the other competitors in the pigments market include Clariant (Switzerland), Sudarshan Chemical (India), and Heubach GMBH (Germany). With DIC Corporation’s strong focus on the fine chemicals business, this acquisition would help the company gain a larger share in the pigments market. This acquisition has expanded DIC Corporation’s technological capabilities and global footprint, thereby providing the company with a competitive edge.

Conclusion:

The acquisition of BASF’s pigments business has added to the company’s focused efforts on expanding its fine chemicals portfolio. This would contribute to the growth of DIC Corporation as the leading player in the pigments market with an enhanced global presence. With the growing demand for pigments in decorative coatings, architectural coatings, and industrial coatings, DIC Corporation would be able to utilize BASF’s expertise, strong global presence, and viable solutions in launching products that cater to consumer requirements efficiently.

For more information, please write to us at info@marketsandmarkets.com

Topics: Pigment, Pigment Dispersions, Organic Pigment, Inorganic Pigment market, pigment dispersions market

Recent Posts

Subscribe Here!

Posts by Tag

See all