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EU decision on Pilkington acquisition

Japan“s Nippon Sheet Glass Co. (NSG) was given the go-ahead to buy the 80% of Pilkington PLC that it does not own by EU regulators on 7 June 2006.
The acquisition of Pilkington will make NSG a globa…

Japan“s Nippon Sheet Glass Co. (NSG) was given the go-ahead to buy the 80% of Pilkington PLC that it does not own by EU regulators on 7 June 2006. The acquisition of Pilkington will make NSG a global leader in the flat glass industry with annual sales of about JPY 760 billion (USD 6.5 billion/EUR5.5 billion). The European Commission said the takeover would not pose any antitrust problems or change the structure of the European glass market because NSG was mainly active in Japan and Asia, while Pilkington concentrates on Europe and the USA. Nippon bought Pilkington, which makes glass for vehicles and buildings, for GBP 1.65 (JPY 340/USD 3/EUR2.4) a share, in a deal worth JPY 358.5 billion (USD 3 billion/EUR 2.6 billion). Nippon must raise JPY 616 billion (USD 5.3 billion/EUR 4.4 billion) in bank loans and a stock issue to meet the cost of refinancing Pilkington“s debts and other expenses, Japan“s second largest sheet-glass maker said in February 2006. Pilkington“s board of directors supported the share purchase plan and will continue to take part in management. They rejected a lower offer from NSG at the end of 2005. The European Commission said the two companies both sell vehicle-related products sold to independent auto parts dealers. But it said NSG“s market shares were too small to cause concern, and the new firm would continue to face several strong, effective rivals with significant market shares.

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