Germany's Merck sells pigments unit to China's GNMI for $721 mln (updated)

Global New Material International Holdings

25/07/2024 13:44

(adds CEO comment and background; paragraphs 2,4)
       GDANSK, July 25 (Reuters) - Germany's Merck KGaA
 MRCG.DE  agreed to sell its pigments unit to China's Global New
Material International (GNMI)  6616.HK  for 665 million euros
($721.46 million), the German diversified group said on
Thursday. 
    Merck intends to use the proceeds from the deal to further
strengthen its strategic core business and to boost materials
for chip production in particular, the German group's CEO Belen
Garijo said in a statement. 
    The deal, which is due to close in 2025, guarantees job
security for employees in Germany as well as maintains the plant
in Gernsheim until 2032. 
    The business, known as Surface Solutions, makes pigments for
a pearlescent or metallic shine in coatings, plastics and
cosmetics, whose value was earlier estimated at about 1 billion
euros ($1.03 billion), Reuters reported citing sources in
November 2022.

($1 = 0.9217 euros)

 (Reporting by Andrey Sychev and Ludwig Burger, Editing by
Miranda Murray)
 ((andrey.sychev@thomsonreuters.com;))