4 June 1998: Japan“s Asahi Glass Co., through its Belgian subsidiary Glaverbel S.A., will purchase the European sheet glass business of America“s PPG Industries. Glaverbel has obtained rights to neg…
4 June 1998: Japan“s Asahi Glass Co., through its Belgian subsidiary Glaverbel S.A., will purchase the European sheet glass business of America“s PPG Industries. Glaverbel has obtained rights to negotiate the deal, and both parties expect to conclude a final contract by the end of June, according to a recent press report. Details about the arrangement, including purchase price and other financial matters, have not been disclosed. PPG maintains sheet glass factories in France and Italy that generate annual revenues of some US$ 450 million. By acquiring these facilities, Glaverbel will significantly enlarge its base of manufacturing in Europe, virtually doubling its current share of the Western European sheet glass market to over 20% and of processed glass for automobiles to 25%. PPG revealed its intention to sell off its European sheet glass business in March of this year. The move reflects the company“s apparent strategy of concentrating resources in growth businesses such as coatings and specialty chemicals and retiring its mature sheet glass portfolio, the report said. The Asahi Glass group, on the other hand, is reportedly seeking to strengthen its glass business worldwide.