AkzoNobel: share up as strategic review launched

(CercleFinance.com) - AkzoNobel said on Thursday evening that it would initiate a strategic review of its product portfolio, starting with its decorative paints business in South Asia.


The Dutch chemical group explains that the operation's aim is to generate funds that can be reinvested in its "core" and growing businesses, i.e. coatings.

As a first step, Akzo says it wants to focus on the various options available in South Asia, a dynamic market which it believes is ripe for consolidation.

Citing a "unique" positioning within the sector, the owner of the Dulux brand points in particular to its history of strong growth in India, where it says it generates high profitability.

But the plan should also encompass other segments of its portfolio, whether at the level of partnerships or joint ventures, through divestments or mergers.

According to CEO Greg Poux-Guillaume, an increased focus on high-performance technologies in coatings should enable the group to accelerate its 'profitable growth' profile.

A diagnosis that was shared by the market this morning, given the almost 3% rise in the share price on the Amsterdam stock exchange, giving a market capitalisation of E10.8bn.


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