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On 27 January, Global New Material International (06616.HK) entered into a merger and acquisition agreement with CQV (listed on KOSDAQ in Korea, stock code: 101240.KS). Global New Material International will purchase a portion of the shares held by CQV’s former shareholders and the company’s treasury shares for a total consideration of approximately KRW85.9 billion (equivalent to approximately RMB470 million). Upon completion of the transaction, Global New Material International will hold 42.45% of the issued shares of CQV, making it the largest shareholder of CQV.
The signing of the M&A was attended and witnessed by the Chairman of the Board of Directors of Global New Material International, Mr. Sul Tian and Vice President, Mr. Zhou Fangchao, the Representative Director of CQV Korea, Mr. Jang Gil Play and Vice President, Mr. Lim Kwang Sui, as well as leaders from various intermediaries. The signing marks a new breakthrough in Global New Material International’s globalization strategy.
CQV is the largest pearlescent material company in Korea and has outstanding brand influence in the global pearlescent material industry. CQV has focused on the pearlescent material industry for more than 20 years and has a strong technical research and development team, global leading intelligent factories, global sales channels and international famous customers; it has the world’s leading synthetic mica-based pearlescent pigment product system. At the same time, it has advanced manufacturing processes and technologies for high-end pearlescent materials, including automotive-grade products such as automotive paint pigment powder, as well as cosmetic-grade materials.
As a global leader among pearl pigment manufacturers, Chesir aims to further strengthen its international presence through the cross-border acquisition of CQV, increase its global market share, enhance its pricing power, and expand its product applications. At the same time, CQV’s forward-looking development strategy will promote Chesir’s continued specialization and innovation in R&D, help further optimize its raw material supply system, and reinforce its advantages in synthetic mica. This move will further expand the business layout in the field of high-end pearlescent material such as automotive grade and cosmetic grade, and fully grasp the rapid growth opportunities in the global market, especially in the automotive and cosmetic pearlescent pigments market in China, so as to fully enhance the company’s global competitiveness.
Cross-border M&A plays an important role in enhancing the position of Chinese enterprises in the global value chain, serving the transformation and upgrading of the domestic economy, and deepening the mutually beneficial and win-win development between China and other countries in the world. At present, Global New Material International is in the stage of rapid international development. In the future, the company will continue to actively explore business opportunities in the international market, enhance the construction of international industrial chain and expand its geographical coverage, so as to further promote the internationalization process and enhance the profitability and comprehensive competitiveness of the company.
This cross-border acquisition is a new milestone in the implementation of the strategy of “endogenous development and outward expansion”, and a new starting point for the internationalization strategy of the company. In the future, the company will fully grasp the development trend of the international new material industry, firmly grasp the opportunity of the rapid growth of the new material industry, strengthen the synergistic development with CQV, and move forward towards the strategic goal of “becoming a leading global surface performance material company”.
